Gambling Winnings On Cruise Ships

Hit a $2,000 jackpot on a cruise ship. Thought he could offset it with $5,000 in losses from his land-based casino play and wouldn't be taxed for it.

They may be smaller than the ones in Las Vegas, but cruise ship casinos mirror what’s found on land in terms of rules and the training required for dealers. Cruise lines make sure they’re offering the latest and most popular slots and table games, including penny video slots and the ever popular blackjack. Here’s what you need to know to improve your odds, at least of having fun:

  • Cruise ships do need to have a premises license if they offer commercial gambling, but if the ship is “on a journey into or from international waters” then no premises license is even required at.
  • If you take a cruise, then the odds are high that you're going to end up spending at least a little time in the ship's casino. While today's cruise ships offer a ton of things to do and see, when it comes to late-night activities, there's little on the ship that beats the draw of gambling. And at first glance, the cruise ship casino looks the exact same as any casino you might see on land.
Gambling Winnings On Cruise ShipsTaxes on gambling winnings on cruise ships

1. Casinos close while in port.

Taxes

Taxes On Gambling Winnings On Cruise Ships

Taxes

If you plan to spend a lot of time in the ship’s casino, choose an itinerary with a lot of sea days. With a few exceptions — including overnight in Bermuda and Nassau ports — cruise ship casinos are required to remain closed when the ship is in port so as not to compete with local gambling or entertainment businesses. In Bermuda, casinos on ships can operate from 9 pm to 5 am, and in Nassau, from 7 pm to 3 am.

2. Ship casinos are open in international waters.

Photo by SIME / eStockPhoto

Casinos are typically only open 3 to 12 nautical miles from the coast. However, in the case of Alaska, cruise ship casinos are permitted to open 3 miles after departing from one Alaska port until 3 miles before arriving in the next Alaska port, regardless of proximity to land. That’s good for gamblers, as cruises in southeast Alaska tend to hug the coastline.

Winnings

3. Smoking is part of the game.

Though there are fewer places to smoke on cruise ships than ever before, casinos are one of the last holdouts. Most cruise ship casinos, with the exception of the luxury lines, have designated smoking areas for cigarette smokers; however, cigar lovers are rarely permitted to light up.

4. Card sharks are a rare species at sea.

Photo by SIME / eStockPhoto

Professional gamblers tend to focus their energies on the land-based casinos that are open around the clock, without the distractions of a cruise — from buffets to deck parties and those pesky ports of call. Plus, according to Paul Jarvis, vice president of casino operations for Carnival Corp., card sharks seek anonymity, and passengers need to provide the cruise line with their passport details before boarding.

5. Gambling theme cruises offer real competition for top players.

Taxes On Gambling Winnings On Cruise Ships

If you really want to double down on your gaming ops at sea, some cruise lines — including Carnival and Norwegian Cruise Line — host blackjack, slots, and poker tournaments that attract hundreds of gaming enthusiasts. Qualifying rounds are held on cruises throughout the year, with the final competition taking place toward the end of the year.