Win/loss tracking for slots and audit risk - HELP with gambling record keeping!

Thanks for the info. Question though - what counts as a "session"? Like if I gamble from 8PM to 2AM, is that one session? What if I switch from slots to poker during that time? Also, if I hit a $5,000 jackpot but lose $6,000 for the day, do I have to report the $5k as income separately?

A session is typically defined as continuous gambling activity in one location without significant breaks. So your 8PM to 2AM would generally count as one session if you stayed in the same casino. If you switch from slots to poker, those should ideally be tracked as separate sessions since they're different activities. For your jackpot question, yes, you still need to report the $5,000 jackpot as income since it triggers a W-2G (for slots, anything over $1,200). You'll report all your gambling winnings as income, and then you can deduct your losses up to the amount of your winnings as an itemized deduction on Schedule A. The casino is required to report that jackpot to the IRS, so it needs to be on your return.

Did they actually help with creating the gambling log or did you still have to do that yourself? I'm terrible at keeping records while I'm playing. Also, can they help if I've already been notified about an audit?

This sounds like an ad. How exactly does AI help with gambling records? Wouldn't the IRS want actual documentation from casinos rather than something generated by some website?

They don't create the gambling log from scratch - you still need your basic records. But what they do is take whatever documentation you have (bank statements, casino win/loss statements, your own notes) and organize it all into a coherent record that follows IRS guidelines. The system identified patterns and helped me establish clear gambling sessions even when my own notes were spotty. The IRS absolutely wants documentation from casinos - that's exactly why their system is helpful. It doesn't generate fake records, it helps organize your legitimate documentation from casinos, banks, credit cards, etc. into a format that clearly shows your actual gambling activity. And yes, they can help with audit preparation if you've already been contacted by the IRS.

How does this actually work? They just wait on hold for you? Couldn't you just put your phone on speaker and do other stuff while you wait?

Yeah right. There's no way to "skip the line" with the IRS. This sounds like a scam that just charges you money to do what you could do yourself. The IRS probably doesn't even tell you anything useful when you finally get through.

It's not about waiting on hold for a few minutes - the IRS hold times can be 3+ hours, and often you get disconnected after waiting that long. Claimyr has a system that waits in the queue for you, and only when they reach a human agent do they call you to connect. You don't have to keep your phone tied up or worry about dropped calls. I get the skepticism - I felt the same way at first. But it's not about "skipping the line" - you're still in the same queue as everyone else, just not personally waiting on hold. And regarding getting useful information, the IRS agents I spoke with gave me specific guidance about session reporting methods for slot machines that I couldn't find clearly stated anywhere online. They clarified exactly what documentation is expected during an audit for gambling losses.

This is really helpful info, thank you! I've played at 6 different casinos this year. For the player's card statements, will they show both wins and losses accurately? I'm worried because sometimes I'd win a bunch and then put it all back in different machines. Also, for days when I lost track because I was playing for 12+ hours, would these statements help fill the gaps in my personal records?

The player's card statements don't track every single win and loss, but they do track your "coin-in" (how much you played) and your net win/loss while the card was inserted. This gives a good overall picture of your activity. They won't show when you moved from machine to machine, but they confirm you were gambling significant amounts at the establishment. Yes, these statements are extremely helpful for filling gaps in personal records, especially for those marathon sessions. The IRS understands that slot players can't document every pull of the lever, which is why the session method is accepted. The player's card statements provide third-party verification of your gambling activity. Request them ASAP as some casinos take a few weeks to provide them, especially as you get closer to tax time.

Did you track by day or by session? Like if you gambled from 10pm-4am across midnight, is that one session or two days?

I tracked by session, not by calendar day. If I started gambling at 10pm and played until 4am, that was one session since it was continuous play at the same location. The IRS agent during my audit said this was the correct approach - they care more about continuous gambling activity than what date it technically crosses over. What really mattered was being consistent with my method. I defined a session as continuous play at one casino with breaks of no more than 30 minutes (bathroom, food, etc.). If I left the casino and came back later, that was a new session even if it was the same day. The key is documenting your methodology and sticking to it throughout the year. Don't mix methods or the IRS will question the reliability of your records.

Yes, definitely track separate sessions as separate rows even if they're at the same casino on the same day. This gives you better documentation and shows the IRS you're being thorough about tracking distinct gambling activities. Bank statements showing ATM withdrawals near casinos are generally acceptable backup documentation, especially when combined with other evidence like player's card statements and hotel records. The IRS understands that people don't always keep every receipt. What matters is having a reasonable paper trail that supports your claimed losses. For professional help, look for an Enrolled Agent (EA) or CPA who specifically mentions gambling tax experience. Many regular tax preparers don't understand the nuances of gambling tax law. You might also want to search for tax professionals who have experience with IRS audits, since that's likely where you're headed with those amounts. Some tax pros even specialize in representing taxpayers during gambling-related audits. Given the significant amounts involved ($650k wins, $725k losses), professional help is probably worth the cost. They can help you organize everything properly and represent you if you do get audited.

This is excellent advice about contemporaneous records! I wish I had known this earlier in the year. I'm definitely going to start using my phone to document everything going forward. One thing I'm curious about - you mentioned texting yourself the session info. Would screenshots of those texts actually hold up as documentation during an audit? Also, for the bank/credit card statements, how detailed do they need to be? Some of my credit card cash advances just show the casino name but not specific amounts or times. I'm also wondering about the representation aspect. Should I wait to see if I actually get audited before hiring someone, or is it better to get professional help now while organizing my records? With the amounts involved, I'm leaning toward getting help upfront, but I'm not sure if that's overkill.