Won at a US Casino on Holiday? You Could Get Your 30% Tax Back

Jun 20
4 min read

Imagine you're enjoying a holiday in the United States. Perhaps you're visiting Las Vegas, Atlantic City, or one of the many casinos found across the country. You decide to try your luck, and unexpectedly hit a significant jackpot.

It's an exciting moment—until you're told that the casino must withhold 30% of your winnings for US federal tax.

What many UK residents don't realise is that this tax may be recoverable.

Why Is 30% Withheld?

When certain gambling winnings are paid to non-US residents, US casinos are generally required to withhold 30% federal tax before releasing the funds. As a result, many visitors receive substantially less than their headline winnings.

For example, a $10,000 jackpot could result in a withholding of $3,000, leaving the winner with only $7,000 at the time of payment.

The US-UK Tax Treaty Advantage

The good news for UK tax residents is that the tax treaty between the United States and the United Kingdom provides relief for many gambling winnings.

Where the winnings arise from a genuine recreational gambling activity while visiting the US, a UK resident may be entitled to claim back the federal tax that was withheld by the casino.

This often comes as a surprise to holidaymakers who assume the tax deduction is final.

A Typical Scenario - Won at a US Casino on Holiday

Consider the following example:

A UK resident visits Las Vegas on holiday.
They win a jackpot at a casino.
The casino withholds 30% US federal tax.
The winner receives a Form 1042-S showing the winnings and tax withheld.
The winner files a US non-resident tax return.
The IRS processes the claim and refunds the tax that should not have been due under the treaty.

In many cases, this can result in a substantial refund.

What Documents Are Needed?

To claim a refund, you will generally need:

Details of the gambling winnings.
The Form 1042-S issued by the casino.
Proof of identity and foreign status.
A US Individual Taxpayer Identification Number (ITIN), if one has not already been issued.

What If You Don't Have an ITIN?

Many visitors leave the casino without obtaining an ITIN or because the casino does not have a gambling official who is a certifying acceptance agent (CAA).

Fortunately, this does not prevent a refund claim.

An ITIN can be requested by submitting Form W-7 to the IRS, typically alongside the first US non-resident tax return. Once issued, the ITIN allows the IRS to process the refund claim correctly.

Filing the US Tax Return

The refund is usually claimed by filing Form 1040-NR, the US Nonresident Alien Income Tax Return.

The return reports the gambling winnings, applies the relevant treaty provisions, and claims repayment of any tax withheld that is not ultimately due.

Because treaty claims and ITIN applications involve specific IRS procedures, many taxpayers prefer professional assistance to ensure the claim is prepared correctly.

How Just Breve Can Help

At Just Breve, we help UK residents and other non-US visitors recover US tax withheld from casino winnings.

Our services include:

Preparation and filing of Form 1040-NR.
Assistance with ITIN applications using Form W-7.
Review of casino documentation and withholding statements.
Support throughout the refund process.

Whether you won big in Las Vegas, Atlantic City, or another US casino while on holiday, we can help you determine whether you're entitled to a refund and guide you through the process from start to finish.

Don't Leave Your Refund Behind

A lucky win on holiday should stay a lucky win.

If a US casino withheld 30% tax from your winnings, you may be entitled to recover some or all of that amount under the US-UK tax treaty.

Contact Just Breve today to find out whether you can claim a refund and let us help you navigate the process with confidence.

Ready to Claim Your US Casino Tax Refund?

If you've had 30% tax withheld from your US casino winnings, don't assume the money is lost forever. At Just Breve, we specialise in helping UK residents and other non-US visitors recover tax withheld from gambling winnings through the correct IRS procedures. Whether you need to file a Form 1040-NR, apply for an ITIN using Form W-7, or both, we can guide you through the process from start to finish.

We Can Help With:

✓ US Non-Resident Tax Returns (Form 1040-NR)

✓ ITIN Applications (Form W-7)

✓ Reviewing Casino Tax Documents (Form 1042-S)

✓ US-UK Tax Treaty Claims

✓ IRS Correspondence and Follow-Up

Not Sure If You're Eligible?

Many holidaymakers are surprised to learn they may qualify for a refund. A quick review of your circumstances and casino paperwork is often enough to determine whether a claim is worth pursuing.