Return of information as to payments of winnings from bingo, keno, and slot machines.
(a) In general.
On or after May 1, 1977, every person engaged in a trade or business and making a payment in the course of such trade or business of winnings (including winnings which are exempt from withholding under section 3402(q)(5)) of $1,200 or more from a bingo game or slot machine play or of $1,500 or more from a keno game shall make an information return with respect to such payment.
(b) Special rules.
For purposes of paragraph (a) of this section, in determining whether such winnings equal or exceed the $1,200 or $1,500 amount—
In the case of a bingo game or slot machine play, the amount of winnings shall not be reduced by the amount wagered;
In the case of a keno game, the amount of winnings from one game shall be reduced by the amount wagered in that one game;
Winnings shall include the fair market value of a payment in any medium other than cash;
All winnings by the winner from one bingo or keno game shall be aggregated; and
Winnings and losses from any other wagering transaction by the winner shall not be taken into account.
(c) Prescribed form.
The return required by paragraph (a) of this section shall be made on Form W-2G and shall be filed with the Internal Revenue Service Center serving the district in which is located the principal place of business of the person making the return on or before February 28 of the calendar year following the calendar year in which the payment of winnings is made. Each Form W-2G shall contain the following:
Name, address, and employer identification number of the person making the payment;
Name, address, and social security number of the winner;
General description of two types of identification (e.g., “driver's license”, “social security card”, or “voter registration card”) furnished to the maker of the payment for verification of the winner's name, address, and social security number;
Date and amount of the payment; and
Type of wagering transaction.
In addition, in the case of a bingo or keno game, Form W-2G shall show any number, color, or other designation assigned to the game with respect to which the payment is made. In the case of a slot machine play, Form W-2G shall show the identification number of the slot machine.
[T.D. 7457, 42 FR 1471, Jan. 7, 1977, as amended by T.D. 7492, 42 FR 33286, June 30, 1977]