Avid casino gamblers usually say that nothing beats the feeling of spinning the reels, playing the lottery, or beating the odds. Whichever the game in question, the last thing that comes to your mind during this exciting experience is taxes. However, they are inevitable when you score a big win or have a profitable gambling year. The IRS (Internal Revenue Service) expects you to report all your winnings on your tax return.
The number of online casinos has been growing steadily over the last decade, with new ones being launched daily. Some operate from foreign jurisdictions catering to audiences worldwide and do not fall under US laws.
So, does this mean you still have to pay taxes even if these sites are based overseas? This article will answer this question, explain which sites require you to pay taxes, and where to find those without W-2G requirements.
Best Non W-2G Online Casinos
Whether you are a fan of spinning the reels, a poker shark, or a live dealer games enthusiast, make sure you know the best non W-2G online casinos. The quest can be tough, especially if you do it all by yourself. For that reason, we searched high and low for the most reliable online casino sites that meet our strict standards, saving you time and money.
We have put these operators through a set of tests and examined their game selection, promotions, and banking methods. Our picks include brands featuring plenty of games leading-industry developers and an extensive list of payment methods, from standard to crypto-friendly.
Aside from that, players have access to different bonuses, can get assistance 24/7, and never have to worry about their financial or personal information being stolen. In light of this, we recommend you play at the trusted casinos listed on this page.
How US Online Casinos Use W-2G Form
According to the IRS, all winnings are subject to taxes and must be reported, including those from races, card games, slots, lotteries, bingo, and sports, and that also applies to money won in foreign countries.
All US-licensed casinos, land-based and online, are required to hold records of everyone who bagged any prizes and withhold 24% of the win before sending them to fill out the W-2G form. This document includes the following:
- Total amount of your winnings
- Date(s) of winning
- Wager type
- Amount of federal and state income tax withheld so far
Gambling establishments must issue this form if you:
- Won prizes exceeding $1,200 from slot machines or bingo
- Bagged $1,500 or more from Keno
- Netted prizes worth $5,000 or more in a poker tournament
- Made $600 for other types of winnings, which were at least 300x the amount of your bet
Note that some games, such as table games, don’t have to be recorded because the casino cannot know how much money you start with at the tables. However, you do have to pay taxes to the IRS on profits for:
Also, if a casino doesn’t issue this form, you still have to report your winnings as income. If you are a professional gambler, you can declare it as business earnings. Otherwise, it counts as other income for casual gamblers, and you must fill in Form 1040.
We should also mention that each US state is different, and some have flax tax rates while others impose more complicated regulations. Thus, it is advisable to seek legal advice to learn about your rights and responsibilities.
What Are Online Casinos Without W-2G?
The Internal Revenue Service perceives all gambling winnings as income, which are, by default, taxable. Even if you are a foreigner in the US and thus unable to provide your SSN (social security number), the gambling establishment will withhold 30% of your winnings for taxes.
In contrast, offshore online casinos are not overseen by US laws because they are licensed by international regulatory bodies in places like Malta, Curacao, Panama, and others. These platforms are not required to report and disclose your winnings to the IRS and are often referred to as online casinos without W-2G requirements.
Why Do US Players Join Online Casinos With No W-2G Requirements?
Many US players frequently visit online casinos without W-2G for a number of reasons. Here are the top ones:
- Privacy — Offshore online casinos often attract players who value their privacy and want to stay anonymous. These online casinos without verification are ideal for those who don’t want to disclose their identities. On a US-licensed site, you would be required to enter your SSN, allowing the IRS to identify you and issue you a W-2G form.
- Crypto payment support — Another great advantage that goes hand in hand with privacy is the fact that offshore casinos support a vast number of cryptocurrencies. Crypto transactions are anonymous and difficult to track. As they are practically untraceable, you could avoid reporting your gambling winnings to the IRS.
How We Choose the Best Online Casinos Without W-2G
Choosing a non W-2G online gambling site can be difficult, especially since the market is flooded with operators. Our team has tested a dozen of them and examined all the relevant parameters you’ll find below.
If you intend to play at an online casino, it is imperative that you verify the platform is reputable. Coincidentally, it’s the first item on our list we like to check. To learn more about the site’s reputation, we scour the web and read honest reviews and feedback.
Our team is able to distinguish genuine reviews from those left by users who violated the rules, abused bonuses, or had their winnings forfeited for using multiple accounts.
Besides reviewing former players’ complaints, we also examine how the operator handled and resolved those issues.
Security is vital when assessing non W-2G online casinos, and we ensure they adhere to industry standards. This includes licenses, up-to-date firewalls, two-factor authentication, and other anti-fraud and anti-money laundering measures.
- Casino license — Casinos with valid permits undergo strict testing and meet security and fairness standards.
- Independent audits — Regular audits ensure the casino operates fairly and transparently. They are performed by third-party agencies, and you can usually find those reports on the site’s homepage.
- Security features — Legitimate online casinos use industry-standard security measures, such as SSL and TLS cryptographic protocols, to protect your financial and personal information. This includes various anti-fraud measures.
- Fair gaming practices — Reliable non-W-2G operators use RNG software to ensure the randomness of game outcomes.
Games and Tournaments
The best offshore casinos without W-2G requirements have extensive gambling catalogs and partner only with top-tier providers. They cater to players worldwide and offer a wide selection of slots, jackpots, table games, and live casino options. Their gaming libraries typically include:
But that’s not all — tournaments are also popular with many players. Non-W-2G sites have ongoing competitions you can join regardless of the time of day or your skill level. Thus, we always ensure the platforms we recommend have enough tournaments to keep the players entertained 24/7.
A provider’s game selection is not the only factor we consider; we also take into account their:
- Quality — For our quality evaluation, we test a wide variety of games and tournaments. The assessment phase pertains to graphics, audio performances, glitches, and lags. Plus, we also check the betting ranges and buy-ins. If a game ticks all of these boxes, you can expect a smooth gambling experience.
- Variety — Our team of experts looks into the number of different categories each non-W-2G site features. Thus, we ensure there are slots (including jackpots and slots with unique features, such as Bonus Buy, Drop & Win, or Megaways), table games, live dealer casino, and specialty titles. Another pivotal factor we take into account is the list of software developers that supply the games.
- Organization — The variety of games means nothing if you struggle to find them. Therefore, when evaluating non W-2G offshore sites, our team inspects how the games are categorized. A platform with a straightforward navigation system, several search filters, and an intuitive interface will most certainly have our recommendation.
Bonuses and Promotions
We only select online sites that enable players to make actual money. Outstanding non W-2G platforms offer all kinds of promotions, catering to novice and existing players with different budgets.
The most loyal ones can become part of VIP schemes and receive awards like cash, free spins, various gadgets, higher withdrawal limits, better conversion rates, and more. These are the most popular casino bonuses you can stumble upon:
- Welcome bonus — This is the offer players receive upon registration. Non W-2G international platforms usually offer a 100% bonus up to a certain amount upon your first deposit.
- Reload offer — Reload bonuses aim to boost existing players’ bankrolls and increase their winning chances. They are also subject to wagering requirements and have maximum bonus amounts.
- Free spins — Players can receive a certain number of free spins they can use on selected slots with or without depositing.
- Cashback deal — Many casinos frequently offer players a 5%–10% cashback as compensation for lost bets. However, you must deposit a certain amount to qualify for this promotion.
- No deposit bonus — This is players’ favorite type of bonus, as it doesn’t require them to make any deposits. However, few casinos feature them.
Before claiming any of these offers, make sure you read the casino’s terms and conditions. The last thing you want is your winnings confiscated by the casino because of bonus requirements that you weren’t aware of.
Non W-2G online casinos usually offer a gamut of safe and convenient banking options. We evaluate them based on the following criteria:
- Payment gateways — Payment methods that international gambling sites typically support include bank transfers, credit/debit cards, e-wallets, different vouchers, and cryptocurrencies.
- Transaction and conversion fees — We recommend joining non-W-2G casinos with no or minimal transaction fees. However, since these operators accept a plethora of currencies, they may also charge conversion fees. Thus, we try to find sites whose default currency is USD.
- Processing times — Great offshore operators boast instant deposit and withdrawal times. However, certain transactions may take some time, so we look for methods that don’t surpass several working days. If you opt for cryptos, you can count on instant processing times.
- Withdrawal and deposit limits — Online casinos impose different deposit and cash-out limits. Our advice is to join the ones with a wide range of limits. In other words, these operators cater to high-rollers and those with limited budgets.
It’s worth noting that financial institutions and money transfer providers in the US don’t need to report foreign transactions under $10,000. However, if you are lucky enough to win all the time, don’t make multiple small payments, as banks will monitor them closely and perceive these actions as suspicious.
How to Open an Account at an International Non W-2G Gambling Site Accepting US Players
The sign-up process with non W-2G casinos is pretty straightforward; here is what you must do to create an account:
Pick one of the non W-2G online platforms we listed above.
Load the website on your mobile device or PC. Then, click the Register/Join/Sign Up button.
Once the registration window opens, provide the required information, such as email, address, and date of birth, and create a password.
Verify your account through the email the casino sent you or the SMS code.
Log in using the newly created username and password.
The registration process is complete!
Now you can browse the game offer or visit the Payment section to make your first deposit. Make sure you top up your account with enough funds to redeem the welcome bonus.
Furthermore, you must verify your identity and go through the KYC process before the operator lets you cash out your winnings.
Best Online Casino Without W-2G
International gambling sites with no W-2G requirements may sound too good to be true to US citizens. However, they do accept US players, and they won’t issue the infamous W-2G form to report them to the IRS. It is up to you to decide whether you want to do it yourself. All in all, we suggest you seek legal advice beforehand.
If you decide to try your luck at any online casinos without W-2G, you don’t have to look further than scrolling up to browse our recommendations.
Aside from a bundle of payment methods, these operators allow you to deposit and withdraw using cryptocurrencies, meaning your identity is well hidden. You can also expect a gamut of games and tournaments, 24/7 customer support, a fantastic set of bonuses and promotions, and high-security measures.