Notable gambling wins in Arizona
Matthew Good of Phoenix won half of a $587.5 million Powerball jackpot in 2012. Instead of accepting a long-term payout structure, he took a $192 million one-time payment. Cindy and Mark Hill of Missouri won the other half of the big prize.
Matthew Good isn't the only Arizonan with an interesting lottery tale to tell. Kerry Carmichael won a $2.5 million jackpot in 1995, and his wife, Diane, took down a cool $1 million score in 2013. It happened right before the annual annuity payments from the first win were going to dry up.
The Indian Gaming Regulatory Act (IGRA)
Arizona has more Native American land than any other state in the United States. In fact, tribal lands make up over a quarter of Arizona’s total land area. This equates to almost 20 million acres.
The Indian Gaming Regulatory Act (IGRA) legalized casino gaming for federally recognized tribes within certain prescribed parameters. This opened the door to legal casino gambling on tribal land in the state of Arizona and every other state in the union.
In order to take advantage of the opening, a tribe in a given state must negotiate a contract with their state government that is called a “compact.”
After some bitter negotiations and legal challenges, then-Governor Fife Symington signed compacts with 16 federally recognized Arizona tribes between 1992 and 1994. Four years later, his successor, Jane Hull, inked a compact with a 17th tribe. At this point, all 22 tribes in Arizona that are recognized by the federal government have negotiated compacts with the state.
Arizona taxes on gambling winnings
As with most US states, online gambling winnings are taxable in Arizona. They are treated the same way as income tax which is currently between 2.59% and 4.50%, depending on individual status. Whether you bet on sports, the Arizona lottery, or pari-mutuel wagering, you are required to pay tax on winnings.
In addition, if your winnings exceed $5,000, the federal and state taxes might be withheld automatically. The federal tax withholding requirement is 24%.
IRS Form W-2G will be sent to you by the gambling establishment if you win more than $1200 on slots or $600 or more on other games if the win was at least 300 times your wager amount. If you did not receive a W-2G form, it is still your responsibility to report your gambling winnings as other income in Form 1040.
Here is the rate for gambling winnings in Arizona: