Posted: 8/21/2012 1:04:21 PM
Each casino has it's own set limits for sports bets. They will usaually allow the player to exceed the limit only after they have adjusted their line after each max bet. They will offer their "preferred customers" to exceed the limits on a case by case bases. If they don't know you rest assured you will be capped.
The only time you will receive a W-2G from a casino is when you win, +$600 if your win is 300+ times your bet, +$1200 on a slot/video poker machine, +$1500 on keno or +$5000 from poker tournaments.
Per the IRS all gambling winnings are taxable. Use schedule A, line 21 additional income to report winnings. They will allow the player to deduct gambling losses only up to the amount of reported winnings (the system sucks), schedule A line 28, miscellaneous deductions. When a player uses schedule A they do not need to include proof of line 28 at the time they file. They will however need proof if the IRS conducts an audit. Keep a daily gambling journal with supporting documentation. It's very stressful and complicated, I've got first hand experience with this bullshit.
If your lucky or good enough to win more than $10,000 on a single bet in a sportsbook tell them you only want $9500 cash now and deposit the remaining amount at the casino cage.This will eliminate the need for the casino to fill out a form 8300, reporting a single cash transaction of +$10,000. When you withdraw your remaining money from the casino cage just make sure it's less than $10,000 per transaction and there won't be any 8300 forms filled with the IRS.