High5 Casino is considered a Sweepstakes Site where you can play with free Sweeps coin when you buy play gold coins. is High5 casino belonging to a group call Social Casino based in New Jersey advertises its a on all the social media. Its fun, its exciting you can even withdraw money from playing. The only thing you might not know and I feel everyone should know is every dollar you put into that site you cannot deduct as gambling losses. Also every cent you win on every spin is added up and at the end of the year you will received a 1099-MISC tax form where you will be paying state and federal tax on. I thought well its ok, I should pay taxes on my withdraws winnings but to find out any winning no matter how small you win and doesnt matter if you lose it at the end all winnings is considered taxable. So I feel i should spread the word to everyone who decides to play because of the ads you see that is very tempting to know that at High5 casino is sending out 1099-misc. I haven't received any 1099 from the other social casinos yet but I feel i will be receiving those as well because they are getting pressured by the tax board to send it or lose their license to operate in that state. please look into this as im sure millions dont know about this. I received a 1099-misc tax form for $15,700, but I only withrew $4500 in 2023 and I never won any jackpots. Ive been trying to reach High5 casino which is based in New Jersey for questions and no response. I've lost thousands to them and at the end have to pay $15,700 taxes on my losses as well. This is a horrible company tricking players and screwing them both ways. The american people should know as Im starting to see the ads more and more on social media.
The widespread trend of social/sweepstakes casinos! Are these considered legit online casinos? (sida 2)
Can someone help me. I received a 1099-misc from high5 casino for $15,700 and its not correct. First off, I went back and reviewed my withdraws to skrill and only with draw for 2023 was for $4500. Second was they put it as a prize winning and not gambling so no deductions permitted. I've been emailing them to review it because tax deadline is in 3 weeks and no reply yet. I dont know what to do or who to reach out to. I dont have the money to pay for 15,700 worth of taxes. Please help
Hello,
Thank you for reaching out to us on the forum! The way I see it, social "gamblig" has become very popular, so every insight is appreciated.
Yet, I'm sorry to say that social casinos are not standard online casinos. In my opinion, these sites try to fill the empty space on the market where gambling is not allowed officially. Thus, we, as Casino Guru, don't even review such sites as casinos, and frankly, we also can't help players with issues associated with this kind of industry. Feel free to browse this thread to find out more about my concerns. I've been doing some research, and I still do not have the answers you seek.
I have to admit, I would never put this paid social fun in relation to taxes, and I have no further knowledge in that regard 🙁.
How about asking a tax consultant? I mean, the time is getting short for speculations. I would go to the source to find out more.
I have an idea, though. At least I can try to put you in touch with someone more knowledgeable than me.
Check out my attempt right here 👈
Hi, something sounds wrong to me. If you only won 4300 then you are responsible for taxes on that amount. I never played at high 5 casino allthough i have checked out their site. I never join any casino that uses Skrill. Looking at Skrill's sign up they ask too personal questions and they also want your bank account information with login. That's a NoNo for me. Maybe thats part of your issue. You're using a third party for money transfers. After reading the T&C'S at at Sweeptastic they have an office in the United States so I will file the small amount I have won at the end of this year. As for redemption and prize-winning it is a A. C. H credit transfer to your bank account. No Skrill or any other third party company?
Maybe Skrill screwed up your account with someone else's.
Radka, I don't know how they get away with it. It's not considered gambling. It's considered a social casino where you could play for Free. You buy coins.
And then you could play for real with those coins and then win prizes. It turns into a sweepstake.
Hi Zena, Thats the thing, I dont understand how they came up with $15,700 unless they added all the small win from every pull. I never won a jackpot and Im wondering where they also got my social security # to put on the 1099-MISC. I suspended my account for 3 months so I cant get in to chat with them live. Ive been emailing them asking how they came up with that number so many times but no response. I already knpow there is no way around the tax part but I want them to explain how they came up with that amount or if that was a mistake and ask them to amend the 1099. For sure if this gets resolved or not I will definitely not play online anymore. Im already stressing with next years taxes as well because I won about 6000 this year but lost it back. ughhh
Who issued the 1099 the casino or skrill?. If you only won 4300 and then 6000 how could you possibly owe 15 000 in taxes?
I would check with Skrill and I would hire an accountant to go over this 1099.
You should only have to pay taxes on your net winnings.
It was high5 casino that issued the 1099. Im so frustrated with them because Im not getting any answers.
I just read the redemption process of Sweeptastic. There is no mention of a 1099 but it does say you(the player) are responsible for taxes. The sponsor is not. I think someone at the High 5 casino messed up. I would get all my net winnings together and hire an account that can straighten out this situation for you. When you spin the reels and you win a bit that goes towards your playthru if you took a match bonus. You shouldn't be taxed on that or any money that is in your account. The only time taxes come into play is when you redeem or withdraw into your bank account then Its considered income.
Just found this
Although these companies market themselves as "sweepstakes" for legal purposes, that does not determine the tax treatment of the income. The "coins" you receive when you deposit are directly correlated to your deposit, i.e. a wager. You are then using these coins to play a game of chance in order to win a potential prize. That is the IRS textbook definition of gambling winnings.
The form the winnings are reported on does not matter. Daily Fantasy Sports also issue 1099-MISC forms, but is treated, for tax purposes, as gambling winnings as well. Sweepstakes require no fee for entry. There must be no wager involved. The "loophole" for legal reasons would not hold up for tax purposes.
You are able to deduct all other gambling losses against these type of winnings. This includes money wagered, and lost, in other social casinos. You can make estimated payments based on your net winnings whenever you see fit. Definitely speak to a CPA about your options or do a bit of planning.
Thats another thing Im confused about. Wouldnt I have received a W-2G? How would I claim this on my taxes as a gambling when they issue me a 1099-misc and they consider it a prize. How can I argue and prove to the IRS that this is gambling. Im very scared of the IRS. As of getting High% casino to review my request is another problem because they are not responding to me. Zena, I want toi thank you for taking your time to help me with this matter. I appreciate you very much.
No Problem John, But seriously get a CPA to look deeper into this. Someone reported wrongly.
I cant even afford to hire a CPA as all my money is going to pay a lump sum of $6800 for my state tax last year. I researched that if High5 does not amend my 1099 that I would have to pay the tax upfront and file a I think its called 1099 incorrect amount form and send it in . I will probably have to make payments on the tax unless I claim that I lost $15,700 which I easily did last year. In a way Im glad this is happening becaus this will be the reason I quit online gambling. Online gambling has ruined me for 2 years and I couldnt stop. This right here will .
I am a bit confused. How much money did you actually win over the years? Maybe they added up all the years of winnings. And that's your total tax owed.
How much could CPA actually cost to look into why this is happening? I'd rather pay CPA than high taxes that were reported incorrectly.JMO
Radka, I don't know how they get away with it. It's not considered gambling. It's considered a social casino where you could play for Free. You buy coins.
And then you could play for real with those coins and then win prizes. It turns into a sweepstake.
May I just ask something here, please? Is it actually possible to win some big here?🤷♀️ It seems really strange to me, how come that so many people do want to play in these social casinos. Is it even safe, I really wonder?🤔
To who it may concern I have been playing with Pulsz cansio I have been playing on line so I try to redeem I verified my id confirmed by email so I can to verify account I sent it no nothing but the same email. I keep emailing
Hello and welcome to this really interesting thread about social casinos, as its the Pulsz. Am I right, is it a social casino, please? Just to make sure of it, you know. If you're interested, have a look at this thread, where you will find out, that we do not keep such casinos in our database, as they are not safe, in our opinion. Therefore, we won't be able to help you out with this issue, an I am really sorry about it.
May I ask, if this is your first experience, and unfortunately not positive at all, when it comes to social casinos?
Radka, I don't know how they get away with it. It's not considered gambling. It's considered a social casino where you could play for Free. You buy coins.
And then you could play for real with those coins and then win prizes. It turns into a sweepstake.
Thank you very much for engaging in this conversation - Yes, this is my point precisely! I'm glad you see this situation the same way, and in my opinion, such activities should be considered as real money gambling, though the background of this whole social/sweepstakes industry is a bit suspicious to me. 🤷♀️
Well I am having an issue now since March 18th. My first win was at the beginning of March. 5 days later I received my money. I won again a few weeks later and my redemption was process on March 18. It usually takes 3 to 5 days. Today is the ninth day and I never received it. They are checking with the payments team on this. Another casino that uses 3rd party payments team. I believe it's an issue with the ach transfer company..Just my luck!
Hopefully it will get resolved soon.🙃
