I am not certain of it but that is my understanding. I have never had a reportable win so I don't have the experience. However, in fact last night, I had that very discussion with a friend who is a much higher limit player than I am, actually it is his wife, and who expressed his frustration that the state claims a percentage of all reported W2G(?) winnings regardless of any losses. He sees all the taxes on her winnings through their tax returns at year end. In about May and June, she had a huge run up of wins on $1 and $5 slots and won 3 or 4 large Jackpots in that period. Obviously she has a downside from time to time but his concern is for the amount of wins and the state taxes on them. Do they (the casinos) deduct the state taxes from the win? or, are you on your honor to pay the taxes knowing that the state receives a report of your pays?

It does appear as extremely unfair and is probably one of the reasons, along with entry fees, 75% taxes on the casino which have resulted to higher parking costs, fewer hours, no free NON ALCOHOL drinks and $50+ fees to play poker, that have been driving down revenues for gaming in Illinois while gaming in the midwest, as a whole, is actually on the rise. Raising the market share of the Northern Indiana boats.