No, Bovada, like all offshore online casinos operating in the United States, is required to report winnings to the Internal Revenue Service (IRS) but does not. Gambling winnings are considered taxable income under US tax law, but since they are an offshore site they do not report winnings..
When you win money at a land based casino, the casino is required to issue you a W-2G form. This is a tax form used to report gambling winnings. The W-2G form will show the amount of your winnings, the date of the winnings, and any federal income tax withheld from the winnings.
Threshold for issuing
It is important to note that the threshold for issuing a W-2G form is $1200 or more for winnings from bingo or slot machines, and $600 or more for winnings from keno. This means that if you win less than these amounts, you may still be required to report the winnings on your tax return, but the online casino will not issue a W-2G form.
In addition to the W-2G form, casinos are also required to report all gambling winnings to the IRS, regardless of the amount. This means that the IRS will have a record of your winnings and can cross-check this information with the information you report on your tax return.
If you fail to report your gambling winnings to the IRS, you could face penalties, fines, and interest charges. It is important to accurately report all of your gambling winnings, including those from online casinos like Bovada, on your tax return each year.
Bovada and other online casinos operating in the United States are required but do not report winnings to the IRS. They are also supposed to issue W-2G forms for winnings over a certain amount. It is important for players to accurately report all of their gambling winnings on their tax return each year. This is to avoid penalties and fines from the IRS.