Happy Valley Casino opens soon. What gambling is legal in PA & how are winnings taxed?
With the Happy Valley Casino expected to open in April, you might have some questions about what, exactly, is allowed.
The casino, which will anchor the struggling Nittany Mall, has been in the works for at least five years and is owned by New York-based Saratoga Casino Holdings.
We looked into Pennsylvania betting laws and what to know about gaming at the new casino. Here are five questions about gaming laws you might want to know the answer to. Let us know if you have any other questions.
What kind of betting will be allowed at Happy Valley Casino?
Slot machines and table games — think blackjack and craps — will anchor the offerings at Happy Valley Casino.
Pennsylvania casinos must apply to operate a sportsbook, and Happy Valley Casino reportedly doesn’t have plans to launch one. For now, that means no sports betting on site. The same goes for online gaming.
There are limits on how many slot machines Happy Valley Casino can operate, though its plans are not close to reaching them. Happy Valley is considered an “ancillary” or “satellite” casino under Pennsylvania law, capping it at 750 machines. The casino is aiming for 600.
How old do you have to be to play?
The gaming age at Happy Valley Casino is 21.
If the state figures out an underage person won money at the casino, it will take the winnings and invest them in gambling addiction programs.
Can underage people enter casino property if they don’t gamble?
Those younger than 21 cannot enter the gaming floor, but aren’t barred from casino property by statute.
Exceptions apply for employees of the casino or regulators performing their duties. The law does not have carve-outs for accompanied minors.
How are gambling winnings taxed at the state and federal levels?
All gambling winnings must be reported on federal income tax forms (Form 1040, Schedule 1 to be specific), according to the Internal Revenue Service. Itemized losses can be deducted in Schedule A of Form 1040, but the amount deducted cannot exceed the amount won.
Generally speaking, winnings exceeding $2,000 must be reported to the IRS by the casino, which will send winners a W-2G form. That is in addition to the individual reporting winnings on their income tax forms.
W-2G reporting doesn’t necessarily mean the winnings will be taxed at a greater rate. Some very specific, high-yield scenarios where an individual wins more than $5,000 in a non-slot game may trigger the casino to withhold 24% of winnings for Uncle Sam.
At the state level, residents and nonresidents alike must report gambling winnings on state income tax forms, according to the state department of revenue. The commonwealth’s personal income tax rate is 3.07%
Are there limits on how much you can bet or lose?
State law gives casinos the ability to adjust minimum and maximum wagers “in the normal course of conducting table games.”
There is no limit on what gamblers can lose.
