7. Tables for Withholding on Distributions of Indian Gaming Profits to Tribal Members

Official source

If you make certain payments to members of Indian tribes from gaming profits, you must withhold federal income tax. You must withhold if (a) the total payment to a member for the year is over $16,100, and (b) the payment is from the net revenues of class II or class III gaming activities (classified by the Indian Gaming Regulatory Act) conducted or licensed by the tribes.

A class I gaming activity isn’t subject to this withholding requirement. Class I activities are social games solely for prizes of minimal value or traditional forms of Indian gaming engaged in as part of tribal ceremonies or celebrations.

Class II.

Class II includes (a) bingo and similar games, such as pull tabs, punch boards, tip jars, lotto, and instant bingo; and (b) card games that are authorized by the state or that aren’t explicitly prohibited by the state and played at a location within the state.

Class III.

A class lll gaming activity is any gaming that isn’t class l or class ll. Class lll includes horse racing, dog racing, jai alai, casino gaming, and slot machines.

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7. Tables for Withholding on Distributions of Indian Gaming Profits to Tribal Members

Official source

If you make certain payments to members of Indian tribes from gaming profits, you must withhold federal income tax. You must withhold if (a) the total payment to a member for the year is over $16,100, and (b) the payment is from the net revenues of class II or class III gaming activities (classified by the Indian Gaming Regulatory Act) conducted or licensed by the tribes.

A class I gaming activity isn’t subject to this withholding requirement. Class I activities are social games solely for prizes of minimal value or traditional forms of Indian gaming engaged in as part of tribal ceremonies or celebrations.

Class II.

Class II includes (a) bingo and similar games, such as pull tabs, punch boards, tip jars, lotto, and instant bingo; and (b) card games that are authorized by the state or that aren’t explicitly prohibited by the state and played at a location within the state.

Class III.

A class lll gaming activity is any gaming that isn’t class l or class ll. Class lll includes horse racing, dog racing, jai alai, casino gaming, and slot machines.