The American Gaming Association has voiced its support for bipartisan legislation that would raise the threshold for which individuals are required to report slot jackpot wins to the internal Revenue Service.
The legislation, introduced by Congressional Gaming Caucus Co-Chairs Representatives Dina Titus and Guy Reschenthaler, and cosponsored by Mark Amodei, Anthony Brown and Steven Horsford, would raise an “antiquated slot tax threshold” to $5,000 and provide “a mechanism for future increases based on inflation”.
The current $1,200 slot tax threshold, says the AGA, has not been adjusted for inflation since 1977, which the group adds has caused “a dramatic increase in the number of slot jackpots casinos and their customers must report to the IRS”.
This legislation builds on efforts by the AGA and Congressional Gaming Caucus that led to Congress directing the Department of the Treasury to investigate the possibility of updating the slot tax threshold through regulation, although a report is yet to be submitted.
“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,” said Bill Miller, AGA President and CEO.
Adding: “Today’s legislation provides Congress a direct path to modernise the slot reporting threshold. We look forward to continuing to work with these bipartisan leaders on Capitol Hill to address outdated regulations that impact our industry.”
According to 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 patron is required to complete a W-2G tax reporting form.
