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Along with one of those life-changing wins on an online slot comes a massive adrenaline rush and immediate plans to parlay that money into ... well, something. Unfortunately, there is one of those two realities of life to contend with basically directly thereafter: Taxes. Here's what to expect.

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On big casino winnings (talking millions) and the reality of taxes

Casino slot winnings online

Jackpot wins on slots -- money flies around in the millionsWhether its online slot winnings or hitting that progressive jackpot in Vegas, there is nothing like the rush you get from this experience.  I guess it’s a bit anti-climactic when you win the progressive jackpot online while playing at your desk, but a win is a win, so you should enjoy the moment. 

It’s not the online slot winnings that get the attention in the press, but the biggest casino winnings ever that grab those headlines.  Here are just a few of the largest progressive jackpot wins in the casinos: March 2003, $39.7 million, January 2000, $34.9 million, March 2002, $22.6 million and September 2005, $21.1 million.

As the popularity of online slots increases, so are their jackpots, as was the case in January 2013, with a win of $17.8 million.

How are slot winnings paid?

Similar to your local lottery, most big slot jackpots are paid out in a lump sum or as an annuity.  The lump sum is usually a percentage of the jackpot amount.  The annuity is paid over time and is the total amount of the jackpot.  Which one to take depends on many factors, but the prevailing wisdom is to take the lump sum.  Big casino and online winnings can be a life changer, for better or worse, so be careful what you wish for, as you just might get it!

Do online and casinos winnings get taxed?casino winnings and the tax implications

There are only two certainties in life, and taxes are one of them.  Yes, in most cases casino winnings get taxed, although the amounts (percentages %) vary significantly from one country to another, as well as state to state, when applicable. 

Just because you have casino winnings or for that matter online casino winnings, which is not earned income, it is all fair game for the IRS and other tax authorities. It would be futile to try and give you any information concerning paying taxes and anything related to finance, as our players are from all around the globe. 

Whether you have casino winnings in Canada, casino winnings in the U.S., or casino winnings in Hong Kong, contact your local tax accountant for financial advice.  Gambling winnings in this day and age are not so easily hidden, and “the man” will no doubt catch up to you!    

Don't spend those winnings bagged on a progressive jackpot slot yet -- Get ready to meet with the tax man, who's gonna come calling. O, and after you win: Try our free slots until the first payment comes in.