Are casinos allowed to deduct tax on winnings in table games like blackjack?

Casinos are not allowed to deduct tax on winnings from table games like blackjack because the IRS requires that all gambling winnings be reported as taxable income for the individual that wins them. This means that the income generated from these games is fully taxable, and it is the responsibility of the winner to report this income on their tax return.

Casinos are mandated to withhold federal income tax on certain winnings, particularly those above a specific threshold, but they do not have the option to deduct taxes themselves from the winnings before paying out. Instead, taxes are calculated based on the net gains for the individual player. This distinction is important to understand for accurate tax reporting and compliance for both casinos and individual players.