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Jennifer Horikawa of Maui, Hawaii, plays on a slot machine at the Main Street Station hotel-casino in downtown Las Vegas on Tuesday, May 26, 2015. The Internal Revenue Service has proposed lowering the reporting level for gambling winnings from $1,200 to $600, a move that the casino industry and its patrons oppose. (Chase Stevens/Las Vegas Review-Journal) Follow Chase Stevens on Twitter @csstevensphoto.
Uncle Sam relies on honesty and big winnings reported on 1099-MISC forms to collect taxes from fantasy sports winners. Lots of states have gambled on casinos as a way to raise revenue needed to help balance budgets and pay for new projects. For years, that's been a good bet. The latest data from the American Gaming Association shows that casinos paid $8.6 billion in taxes to states and local communities in 2012.