The jackpot is the most prized prize on slot machines and video slots. In land-based casinos and online casinos alike, these games are a main draw for players.
Casino jackpots are usually progressive, meaning that they continue to grow as a percentage of each player’s bets. This makes them a lucrative source of income for online casinos, as well as brick-and-mortar establishments.
There are two types of jackpots: local and pooled. The first is a single progressive jackpot offered at a single casino, and the second is a network of jackpots across a range of different online casinos.
Depending on the size of your winnings, you will have to decide whether to receive your money as cash or an annual fixed sum. While winning a one-time lump sum can be beneficial, it is also taxed as ordinary income, so you may not want to take advantage of this option if you are planning to save for the future.
Once you’ve made your decision, the casino will process your winnings according to its rules. It will either pay you in cash or by check, or it will require you to sign a tax form.
If you win a jackpot of $1,200 or more, the casino will take out 28 percent of your winnings for federal taxes. You’ll also be required to show your ID for tax purposes, so make sure to bring it along with you if you’re playing at a casino.