“The increased threshold would not only enable the IRS to focus its limited enforcement resources on those taxpayers who are most likely to have net slot winnings at the end of the taxable year, but would also significantly reduce close interactions required between gaming employees and patrons to issue tax forms.” “Last year, the AGA again encouraged the Department of Treasury to update the slot jackpot reporting threshold to a realistic level, in line with inflation, such as $5,000,” Miller wrote. He called on the Department of the Treasury to act on the IRS form after the president issued an appeal to all departments looking for reforms and regulatory changes that would benefit commerce and industry. The American Gaming Association and Nevada’s congressional delegation have taken note of the need to amend the policy.īill Miller, who had just become the new director of the Washington-based AGA, called on President Donald Trump to address the problem, tying it to the reopening of casinos after coronavirus closures. “Raising the threshold would be a win for the industry, the patron and the IRS.” “The threshold is one that needs to be modernized like many other things that impact the gaming industry, including things like the Wire Act,” said Brendan Bussmann, director of government affairs for Las Vegas-based Global Market Advisors.

Over the years, jackpots have gotten bigger, and more states have approved casinos. The $1,200 amount was established in 1977 and hasn’t been revisited since. That is considered taxable income and is expected to be noted on an individual’s Form 1040 when filing at tax time. Whenever a casino player hits a jackpot of $1,200 or more on a slot machine, the casino is required to issue a Form W-2G to the player and report the amount to the Internal Revenue Service. It’s not a life-or-death issue, but it’s clearly an annoyance that shouldn’t be taking so much time to fix. It seems a pretty simple and straightforward request, but it may take an act of Congress to get it accomplished.Īs the amounts of slot machine jackpots grow and the casino industry expands across the United States, the low threshold for issuing an IRS Form W-2G is becoming a bigger problem for the industry. (Photo courtesy of Caesars Entertainment) Nancy Greenough won more than $500,000 at Harrah's Las Vegas on Monday Sept.

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