Withdrawing Winnings and Cashing Out: What to Do and What Not to Do

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📖 Published on: May 2nd, 2024

✍️ Updated: May 2nd, 2024

⏳ 8 mins read


A solid win at the lottery or in a casino is a feeling like no other - but sometimes, the process of actually getting your winnings can be overwhelming, and knowing the steps to actually claim your cash prize can be unclear. But there’s no need to fret just yet - read on as we give you a better understanding of how you can withdraw your winnings, the right way to do it, and the things you have to avoid when claiming your casino winnings or lottery prizes.


Cashing Out in Land-based Casinos


One of the many pet peeves a frequenter at a casino will probably tell you is that taking your winnings for the night can range from seamless to frustrating. Who can blame them, though? There’s so much going on in a casino and so many staff doing different things at once that it’s hard to find the right person to help.


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While this can often be a point of contention for players, it's not a reason to get your knickers in a twist. Here are some dos and don'ts to remember when you’re ready to cash out your winnings in a physical casino.


Do: Know When is Best to Cash Out

While anytime after a win seems to be a good idea, there’s actually a more tactical way to do it. Set a pot limit that can help you ensure you don’t go beyond your budget and end up spending money you can’t really afford.


No one wants to wake up the next morning with a mind full of regrets from the night before, right? We’re a sucker for welcome offers and first-time promotions, so it’s totally understandable if you find yourself depositing more than you initially planned. It’s actually best to return your chosen limit as soon as possible to avoid any over-expenditure.

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Don’t: Lose Receipts or Purchase Documents

For sure, hanging onto any receipts or documents from your winnings is crucial until you're safely back home or have the cash snug in your bank. These little slips are your proof of the windfall, so keeping them safe helps you manage any disputes that might pop up later, and they're also essential for tax purposes. Just stash them somewhere secure until you’re in the clear!

Don’t: Take the Easiest Way to Cash Out

Steer clear of any sketchy offers to cash out your winnings anywhere that's not the casino's official cashier or designated spots. More often than not, these cash-out options tend to be too simple and quick enough to scam you into instant payouts.

Scammers often hang around trying to trick winners into dodgy deals that could lead to losing your cash. Always stick to the legit spots for cashing out to keep your winnings safe. It’s the best way to dodge those scams and keep your casino experience positive all the way!


Withdrawing Winnings from Online Casinos


Let’s go digital and dive into online casinos and sportsbooks. It’s no secret that most online casino players and iGamers are pro-mobile gaming, with most people finding convenient access through mobile devices. This also means more access to your casino winnings through instant withdrawal options. Here are some tips to keep in mind when you’re ready to take out your winnings from online casino accounts.


Don’t: Skip Security Checks

One of the most frustrating but necessary parts of taking your winnings out of your account is the endless security protocols. While this may be annoying at first, remember that online casinos and financial companies make it a point to prioritize user safety and account security.


This means they will be asking for legal proof that you’re of age and from states where gambling is permitted by the federal government. Some of these may require scanning or faxing photo IDs like passports, driver's licenses, and other ID cards with proof of age. While giving away personal data can be uncomfortable, it’s always better than getting into legal trouble.

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Do: Avoid Withdrawing Winnings on Weekends

The most preferred way when withdrawing winnings from online casinos is straight to a bank account. This is totally fine, but expect some delays; funds typically clear within three to five business days. So it’s best to withdraw winnings during weekdays and avoid weekends for longer delays. Stay vigilant about these transactions by tracking the transfer and waiting for confirmation notices to ensure your money wasn’t compromised. Also, you should avoid 'Reverse Withdrawals' during this time. These can undermine a sound money management plan by enabling gamers to spend money they have already asked to be removed.


Don’t: Forget to Check Local Tax Laws Before Withdrawing Large Amounts

Heads up on handling those gambling winnings: make sure you're in the clear with the tax man. Different places have different rules about reporting casino cash-ins, so double-check what's required where you live. Not reporting can lead to some pretty rough penalties, and who needs that hassle? Doing a quick check on your local tax laws—or chatting with a tax pro—can keep you on the straight and narrow.


Do: Secure Withdrawals Using Stable Internet Connections

When you're ready to cash out those online casino winnings, make sure you're connected to a secure internet source. Public Wi-Fi can be a hacker's playground, and you don't want your personal info snagged mid-transaction! Stick to trusted networks—like your home Wi-Fi or a secure mobile data connection. This step keeps your sensitive details safe and ensures that your cash-out process is as smooth as hitting that jackpot!


Withdraw with Tact and Bet Responsibly


Getting your hands on your casino and lottery winnings shouldn't feel like pulling teeth. With a little know-how and the right approach, it's smoother than a roulette wheel. Gamble like a pro—responsibly. It's all fun and games until the bets are too big to handle


If you're spending more bread than you can earn or the fun is fizzling out, it might be time to call it quits or reach out for a chat with a pro. Remember, it’s only a game! Keep your wits about you, hold tight to those precious receipts, and always, always, play it safe with where and how you cash out. Play smart, cash out smarter!


Learn more about the steps to take and what to do when you’ve won the lottery from our blogs at GambleSpot.

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