You know the drill, the IRS requires the casino to give a “W2G” form to a guest who wins a jackpot of $1,200 or more on a “slot machine”. The other part of the drill is the slot machine locks up, generally requiring a hand pay. At Hard Rock in Sacramento, the casino has a program where it will process the paperwork electronically so the winning credits are dumped into the machine so the guest can recycle the winnings, e.g. give it back faster to the casino. I prefer cold hard cash because the cash makes my wallet really fat meaning I need to leave to the casino shortly to put my newly found money (safely) away.

This question came up in our network: What happens when the $1,200 threshold is raised to say $3,000 or $5,000.

I wrote about this earlier:

https://vegascasinotalk.com/forum/sh...to-max-coin-in

And I specifically gave a detailed example of hedging in this post (note while hedging was not spelled out, it was effen obvious based on the repeated or implied content):

https://vegascasinotalk.com/forum/sh...d-(Slot)-Games

In summary, raising the W2G threshold will raise the combined wagers, e.g. throughput will go through the roof. Imaging a team hedging it’s wagers to stay under the $1,200 limit and now that limit has been raised to $3,000. 3,000 / 1,200 is a factor of 2.5X so roughly 2.5X more coin in, which translate into “better” mailers aka welfare checks, comps, higher chance to win drawings and promos (ceteris paribus).

I will send via PMs three examples of hedging. If you received prior examples, then I will supply the missing examples to get to 3 examples. I only provide examples, it’s up to the individual to work out the math.

If the threshold increases, you would have APs coming out of the woodwork and raping the unsuspecting casinos. The casinos would not know what hit them because they are not aware of certain “games of skills.”