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There is a strong movement for the legalization of online gambling in Connecticut though. Taxation is levied on gambling winnings in Connecticut, but only if the winner is a resident of the state. There’s a flat tax rate of 6.99% on everything subject to federal withholding tax (prizes over $5,000). Federal tax of 24% must also be paid on winnings over the limit for a specific game ($1,200 for slots), as well as winnings that are 300x the bet amount or more.
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