”Today’s legislation provides Congress a direct path to modernize the slot reporting threshold,” Miller said. The new legislation might be a quicker way to make that change happen. However, Treasury has not submitted that report to Congress. Previously, there were efforts to change the threshold through regulation and Congress had directed the Treasury Department to investigate the possibility of updating the slot jackpot threshold through that means. Those who win at real money online gaming devices do not encounter such stoppages, though their winnings are also taxed. Mechanism For Reporting WinningsĪccording to the AGA, under current federal regulation, when a casino patron wins a slot machine jackpot of $1,200 or more, the machine is temporarily taken out of service while the winning customer is required to complete a W-2G tax reporting form. The proposed legislation would also include a mechanism to adjust the threshold to account for inflation in the future. ”Increasing the slot tax threshold to account for inflation is a long overdue change that will alleviate unnecessary administrative burdens on casino operators, their customers and an understaffed and overwhelmed IRS,” AGA President and CEO Bill Miller said in a release on Thursday.
The American Gaming Association, the trade group that represents the gaming industry, has been advocating for what it characterizes as a common-sense inflation-adjusted change in the tax law. The proposed new legislation would amend the tax code and apply to payments made after Dec. When adjusted for inflation, a $1,200 jackpot in 1977 would be equivalent to more than $5,000 today.
That has created ever increasing occasions when casinos must issue a W-2G to the customer and notify the Internal Revenue Service. That’s still a tidy sum but in the 45 years since then, with inflation creating upward pressure, jackpots of that size have become far more common. When the original threshold was set, a $1,200 jackpot was a sizable win for many gamblers. Mark Amodei (R-Nev.), Anthony Brown (D-Md.) and Steven Horsford (D-Nev.).
Dina Titus (D-Nev.) and Guy Reschenthaler (R-Pa.). The bipartisan legislation was introduced by Congressional Gaming Caucus Co-Chairs Reps. The legislation introduced on Thursday would raise the threshold to $5,000. Currently, gambling operators are obligated to issue a W-2G on jackpots of $1,200, a threshold that was set in 1977. Winning bettors must pay taxes on online slots as well as jackpots at brick-and-mortar casinos. Congress that would raise the dollar threshold for when gambling operators are required to issue documentation on a slots jackpot. Legislation is being introduced in the U.S.
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