TAXATION (GENERAL); INCOME TAX; GAMBLING;
TAXES - INCOME; GAMBLING;
Other States laws/regulations; Connecticut laws/regulations;
June 20, 2003
TAX ON NONRESIDENT GAMBLING WINNINGS
By: Veronica Rose, Principal Analyst
You asked if Connecticut taxes nonresidents’ gambling winnings. You also want to know if New Jersey and Nevada tax such winnings and whether any such tax is levied on gross or net winnings.
PA 01-6 (June Special Session), imposed the Connecticut income tax on nonresidents’ winnings of more than $ 5,000 in a lottery run by the Connecticut Lottery Corporation (CGS § 7-11). PA 02-1 (May Special Session), extended this provision to nonresidents' winnings from all gambling activities that take place within Connecticut's borders, including at casinos on Indian reservations within the state. But PA 02-4 (May Special Session), repealed the extension before the act took effect.
In New Jersey, nonresidents’ income from lottery or wagering transactions in New Jersey, other than from the New Jersey state lottery, is subject to New Jersey’s gross income tax. This includes winnings from casino betting and wagering, slot machines, raffles, bingo games, and illegal gambling (NJSA 54A: 5-8a(5)). Nonresidents may offset gambling winnings from New Jersey sources by gambling losses incurred in New Jersey during the same tax period.
We are awaiting a response from Nevada and will provide you with that information as soon as we receive it.