Royal Caribbean, Celebrity Cruises make big casino change

When you win money in a casino, the IRS considers it to be taxable income. In practice, you aren’t exactly expected to report it every time you win $1 on a slot machine spin, or $10 from a hand of blackjack, but the IRS definitely wants to know about big wins.

Under current tax law, if you win $1,200 or more from a slot machine, it requires the casino to issue you a Form W2-G, which is the official way to report gambling winnings. And when the casino issues this form, it also sends a copy to the IRS.

Related: Royal Caribbean quietly takes on high drink package prices

Because of this, a win in excess of $1,200 is often referred to as a hand-pay by gamblers. Because the casino needs to collect certain identifying information from you in order to issue a tax document, a slot attendant physically comes to the slot machine, gathers identification information, and returns with a tax form and your money.

To be clear, just because you’re issued a W2-G doesn’t necessarily mean you’ll end up paying taxes. You can use any gambling losses to offset your winnings, and the cruise line will provide a win-loss statement based on your tracked play. However, it is required to be reported above that threshold.

Want the latest cruise news and deals? Sign up for the Come Cruise With Me newsletter.

Royal Caribbean improves the hand-pay process

Passengers on some Royal Caribbean and Celebrity ships now have the option to register their information with the cruise line, which will speed up the process when they (hopefully) win a hand pay.

If they opt into this new program, their hand-pay winds are recorded electronically, and the necessary paperwork (and your money) will be waiting for you at the cashier’s cage.

To be perfectly clear, a win of $1,200 or more still requires the issuance of a tax form. That, unfortunately, hasn’t changed, although there are legislative efforts in progress to raise the threshold that triggers a W-2G to $5,000, with increases to keep up with inflation going forward. The difference now is that the tax form will be waiting for you at the cashier’s cage.

One caveat is that wins of $10,000 or more still need to be paid out manually. But, for most cruisers at least, a win of that magnitude would certainly be worth the inconvenience.

Royal Caribbean, Celebrity remove pain point

In practice, the hand-pay system is a major pain point among gamblers, both on cruise ships and in land-based casinos.

From a player’s perspective, it is a major inconvenience to have to sit and wait for a hand-pay. The last time I won enough from a slot machine to require a hand pay, the process of getting an attendant to come over, take my information, and return with money took about 30 minutes. 

And I’ve had it take even longer if the casino is particularly busy. Plus, there’s the security risk involved with openly handing a large sum of money in the middle of the casino floor.

More Royal Caribbean casino news: 

• Royal Caribbean shares key casino benefit news for 2025
• Royal Caribbean makes small casino change gamblers will like
• Royal Caribbean makes it easier to earn free cruises on new ships

Of course, considering that these inconveniences are triggered by winning $1,200 pre more, they are good problems to have. But they are problems nonetheless.

The current hand-pay system isn’t exactly desirable for the casino either. As mentioned, my last hand-pay win took about 30 minutes to pay out, and from the casino’s perspective, that is 30 minutes a slot machine that could be generating more revenue is sitting unused. 

Plus, the new system allows slot attendants to focus their attention elsewhere instead of spending time verifying and paying out players’ wins. 

(The Arena Group will earn a commission if you book a cruise.)

Make a free appointment with Come Cruise With Me's Travel Agent Partner, Postcard Travel, or email Amy Post at amypost@postcardtravelplanning.com or call or text her at 386-383-2472.