$5 bet turns into $1 million at Hard Rock, Atlantic City

💲 $5 bet pays nearly $1 million

💲 Money was won playing three card poker

💲 Tax bill is enormous

A lucky guest at the Hard Rock Hotel & Casino in Atlantic City turned a $5 bet into almost $1 million over the weekend.

On Sunday, the guest drew one of the rarest hands playing three card poker: a Royal Straight Flush.

The payoff on the $5 bet turned out to be $943,355. (Minus taxes.  Keep reading to learn how much is owed.)

A hard Rock spokesperson confirmed the win to NJ.com and says it was one of the largest ever paid out at a three card poker table.

We unfortunately don't know who the lucky gambler was, as the person chose to remain anonymous.

What is three card poker?

Three card poker is the American version of a British game called 'Brag.' It is also one of the oldest card games in the world, first appearing in the 15th century.

The game eventually reached the U.S. and is now popular around the world in casinos and as an on-line game.

Three card poker is played as a heads-up game between the player and the dealer. Players do not compete with one another at the table.

After wagers are placed, three cards are dealt face down to each player and then the dealer.

Hands are then exposed, and wagers resolved.

Winning hands are scored and ranked similar to the winning hands in traditional poker games.

You can read the full rules of the game HERE.

Does the winner have to pay tax?

Oh, yes. A lot.

New Jersey is first in line to take a 3% cut. That tax is automatically withheld for both residents and non-residents.

The IRS also wants a much bigger cut. Gambling proceeds are taxed at 28%. Generally, those winnings are taxed immediately with the payer withholding the federal tax before cashing out the player.

In this case, the combined tax on a jackpot of $943,355 amounts to $377,838.74.

The winner gets to keep $565,516.26.

Still, that's not bad on a $5 bet.

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