Gambling Payment Intercept
As of July 1, 2008, casinos are required to check an online database of persons who are delinquent in child support payments prior to awarding cash jackpot prizes that require an IRS form. If the winner of the cash prize is listed on the database, the casino is required to withhold the amount of the child support delinquency and submit it to the State. The withheld funds are directed to the Colorado Department of Human Services to be applied toward the delinquency. If the delinquency is less than the cash prize, the remainder is paid to the winner.
On July 1, 2011, the intercept program was expanded to include debts for outstanding criminal restitution. Casinos still perform only one search, but the search checks for outstanding debt in both areas and forwards any intercepted amounts to the State. The withheld funds are first applied by the Colorado Department of Human Services to any delinquent child support, and next by the State Judicial Department to any outstanding criminal restitution. Any remainder is paid to the winner.
The latest expansion to the intercept program becomes effective on January 1, 2012, and will include certain unpaid debts to the State. As before, casinos perform a single search which subsequently checks for arrears in child support, criminal restitution, and state debt. In the event a patron has debt in all three areas, his/her winnings are intercepted and the debts are applied in the following priority: Colorado Department of Human Services, State Judicial Department, and finally Colorado Department of Personnel and Administration. Any remaining winnings after satisfying any outstanding debt in these areas are paid to the patron.
An IRS W-2G form is required for all slot machine jackpots above $1,200, certain poker jackpots above $600 and poker tournament prizes above $5,000.
For questions or issues related to the online registry, casinos should contact the Customer Service desk at Colorado Interactive at (303) 534-3468, ext. 0 or 1-800-970-3468, ext. 0.