Do I pay tax on my winnings?

Q: Do I pay tax on my winnings?
A: Beginning from 2005, we are required to determine your residency and citizenship in order to comply with the U.S. Internal Revenue Service (IRS) regulations. All foreign citizens are subjected to a U.S. tax withholding of 30% on net winnings (your competition winnings, less entry fees for those competitions which resulted in winnings to you). In order to ensure that your withholding is reported correctly, we recommend that you submit a W-8BEN form.

If you have a U.S. Individual Tax Identification Number (ITIN), click on "I have a Tax ID" and fill out the W-8BEN form. If you do not have an ITIN, you will need to obtain one before you can fill out the W-8BEN. You can obtain an ITIN by going to the U.S. Internal Revenue Service website.

We are required by the U.S. Internal Revenue Service (IRS) to report when a U.S. player's net winnings (your competition winnings, less entry fees for those competitions which resulted in winnings to you) reach $600 in a calendar year. Upon reaching that threshold, you will be asked to submit a W-9 form. If you choose not to submit a W-9, we are required to withhold 28% of your winnings and send them to the IRS.

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