On this page
- What ‘Money Back’ Can Mean After a U.S. Casino Trip
- Lost Bets Are Not Returned by the Casino or the IRS
- Where the 30% Withheld at the Cage Went
- What Can and Cannot Be Recovered, Side by Side
- How the Treaty Lets a Canadian’s Losses Offset Winnings
- Visitors From Countries Other Than Canada
- Claiming Withheld Casino Tax
- What a Preparer Does and Does Not Do
- Frequently Asked Questions
You came home from a U.S. casino with less money than you took. Maybe you lost at the tables, or maybe a slot jackpot was paid at the cage with 30% held back for tax. So can you get money back? It depends on which money you mean. Lost bets stay lost, because the casino keeps them and the IRS does not return them. Tax withheld from a win is different, because it went to the IRS.
What ‘Money Back’ Can Mean After a U.S. Casino Trip
After a trip to a U.S. casino, “money back” can point to two very different sums. The first is the money that went into machines and tables and did not come out. The second is the tax the casino held back from a win before paying it. Under U.S. rules they are handled in completely separate ways.
Lost wagers are gone. A bet buys a chance at an outcome, and once that is settled the casino keeps the stake. Losses can still matter on paper, but only as a possible deduction against U.S. winnings, and whether that is available depends on where the player lives.
Withheld tax is the other pot. When a casino pays a non-resident’s win by hand, it usually withholds tax at 30% and sends it to the IRS. The casino does not keep it. Whether any of it should come back is worked out on a U.S. tax return, and the IRS decides the claim. The real question is whether more tax was withheld than U.S. law requires on that win, which turns on the player’s country of residence and the kind of game. For Canadian residents, how U.S. casino winnings are taxed for Canadians sets out the starting point.
Lost Bets Are Not Returned by the Casino or the IRS
A bet at a U.S. casino is settled when the hand, spin or draw ends, and money lost at that point belongs to the casino. No request to guest services returns lost wagers, and a long losing streak does not change that. The IRS does not return them either. An IRS refund can only come from tax that was paid or withheld. Money lost at a table or machine was never tax.
Losses come into play only on a U.S. tax return, as a possible deduction against U.S. gambling winnings. A net gambling loss is not deductible, so a loss larger than the winnings is not paid out and does not turn into a refund. A Canadian resident has a treaty route for deducting U.S. wagering losses, while most other non-residents generally do not. The treaty rule is explained in what Article XXII(3) allows.
Where the 30% Withheld at the Cage Went
When a U.S. casino pays a non-resident by hand, it acts as a withholding agent. IRS Publication 515 explains that gambling winnings paid to a nonresident alien are generally subject to 30% tax unless a treaty or an exemption applies. The tax is figured on the gross amount of the win, and the casino does not subtract what was fed into the machine earlier that night.
At the cage you get a payout receipt showing the amount won and the amount held back. It is useful to keep, but it is not a tax form. The casino deposits the withheld amount with the U.S. Treasury and, after the year ends, reports it on Form 1042-S. The guide to Form 1042-S walks through what it shows.
This is why asking the cashier or the host for the tax back goes nowhere. The money has already left the building and sits with the IRS as tax paid on your behalf. The reasons casinos withhold 30% are covered in more detail elsewhere.
What Can and Cannot Be Recovered, Side by Side
Money spent on bets that lost is gone. Tax withheld from a taxable win was sent to the IRS, and that is what a claim can ask about.
Table-game winnings surprise people most. Under IRC 871(j), winnings from blackjack, baccarat, craps, roulette and the big-6 wheel are not taxed for non-resident aliens, so a good night at the blackjack table plays no part in a claim. See why table games aren’t withheld like slots.
The loss row is where country of residence matters. A Canadian resident can use the treaty to deduct U.S. wagering losses against U.S. winnings. A visitor from another country generally cannot, apart from netting wins and losses within the same session. Neither asks for lost wagers back. Losses only change how much tax is worked out as owed. The detail is in how the treaty treats gambling losses.
| Item | Does the casino give it back? | Canadian resident vs. other non-resident |
|---|---|---|
| Lost wagers | No. The bet was the price of play. | Same for both. Losses matter only as a possible deduction against winnings. |
| 30% tax withheld on a slot or keno win | No. The casino has already sent it to the IRS. | Both can claim it. How much comes out as overpaid depends on treaty position and, for Canadians, losses. |
| Blackjack, baccarat, craps, roulette, big-6 wheel winnings | Nothing to give back. These winnings are not taxed for non-resident aliens under IRC 871(j). | Same for both. |
| Gambling losses as a deduction | Not applicable. Losses are a tax item, not a casino refund. | Canadian: deductible under Article XXII(3), capped at winnings. Other non-residents: generally not deductible, except within the same session. |
How the Treaty Lets a Canadian’s Losses Offset Winnings
Article XXII(3) of the tax treaty between Canada and the U.S. lets a Canadian resident deduct wagering losses when U.S. tax on gambling winnings is worked out, in the same way a U.S. resident could. The treaty covers U.S. federal income tax only. Without this article, a Canadian would be taxed on gross winnings like most foreign visitors, with no room for losses from the same trip. The deduction is capped at the winnings, so a net loss beyond that is not deductible.
A second limit applies to newer years. For tax years beginning after 2025, IRC 165(d) as amended allows only 90% of wagering losses as a deduction. A Canadian whose records show $10,000 of losses in a 2026 tax year works from $9,000, and that figure is still capped at the winnings. For 2026 and later, some winnings can stay taxable even when losses match or exceed them. Earlier years follow the rule as it stood before.
The deduction depends on proof. The IRS standard is an accurate diary or similar record, backed by receipts, tickets or statements. A casino win-loss statement is common support. See casino win-loss records and what counts.
Visitors From Countries Other Than Canada
The treaty rule above belongs to Canada’s treaty. IRS Tax Topic 419 states the general position for everyone else: a nonresident alien generally cannot deduct gambling losses. A visitor from another country who has 30% withheld and lost more than that over the trip still reports the win as it stands.
The one narrow exception is netting within the same session. Money lost earlier in the same session can reduce the amount treated as the win from it. Losses from a different day, session or casino do not count.
What a non-Canadian visitor can reclaim is set by their own country’s tax treaty with the United States. Some treaties exempt a resident’s gambling winnings from U.S. tax altogether, so the size of any losses is beside the point. Others give no relief, and the 30% may simply be the final U.S. tax. The list of countries whose treaties exempt U.S. gambling winnings shows how much this varies. Australian visitors face a different outcome, because their treaty has no exemption like Canada’s.
Claiming Withheld Casino Tax
The claim for withheld casino tax is made on a U.S. federal income tax return for the tax year of the win. The tax the casino withheld is treated as a payment, which the IRS compares with the tax the return calculates. The proof of withholding is the Form 1042-S the casino issues, and the payout receipt from the cage does not replace it.
The return needs a taxpayer identification number, and most visitors use an ITIN. A refund can be deposited only to a U.S. account or through a foreign bank’s U.S. correspondent account. Otherwise the IRS mails a cheque. More on how the IRS delivers a refund to a Canadian is in a separate article. The IRS reviews the claim, decides it and sets the pace, which varies from case to case. Time limits for claiming depend on the tax year and are checked case by case.
What a Preparer Does and Does Not Do
For a casino tax refund, U.S. Tax Recovery prepares and files the claim for you. It collects the payout receipts, the Form 1042-S and any win-loss records, leaves table-game winnings out, applies a Canadian’s losses and applies the 90% limit for tax years beginning after 2025.
When a client has no valid ITIN, U.S. Tax Recovery, as an IRS Certifying Acceptance Agent listed on the IRS’s Acceptance Agents directory for Canada, reviews and certifies the identity documents, so the applicant does not have to mail an original passport to the IRS. That listing is a credential the IRS grants, not an endorsement of any company.
There are limits too. U.S. Tax Recovery is not affiliated with the IRS, it cannot promise a claim will be accepted, and it cannot say how much will come back. Whether a given tax year can still be claimed is checked case by case. For the order of steps from first contact, see how a casino tax refund works.
Frequently Asked Questions
Can I get the money I lost gambling back from the casino?
No. Neither the casino nor the IRS returns money lost on bets. A Canadian resident can sometimes use wagering losses against winnings under the tax treaty between Canada and the U.S.. That can lower the U.S. tax owed on the winnings, which affects how much of the 30% withheld may be refunded. For tax years beginning after 2025, U.S. law allows only 90% of losses as a deduction.
Where did the 30% the casino took from my jackpot go?
The casino sent it to the IRS as federal tax withheld on your behalf. At the cage you get a payout receipt, and early the following year the casino issues Form 1042-S showing the income and tax withheld. That form is the proof used in a refund claim.
I’m not from Canada. Can I still claim back casino tax?
It depends on the game played and on your country’s tax treaty with the United States. Non-residents other than Canadians generally cannot deduct gambling losses, except against winnings from the same session. Winnings from blackjack, baccarat, craps, roulette and the big-6 wheel are not taxed for non-resident aliens. Treaty terms differ by country, so each case is checked individually.
Do I need an ITIN to get my casino tax refunded?
Yes, if you have no Social Security number. A U.S. return needs a taxpayer identification number, and a non-resident gets an ITIN from the IRS. U.S. Tax Recovery handles the ITIN application and the claim for you.
How long does the refund take, and can a preparer speed it up?
No preparer can control timing. The IRS sets the pace, and it varies from case to case. U.S. Tax Recovery is an IRS Certifying Acceptance Agent, listed on the IRS’s Acceptance Agents directory for Canada. It is not affiliated with the IRS, and the IRS decides every claim.
Treaty & losses
Forms