The American Gaming Association released the following statement commending Reps. Dina Titus (NV-01) and Darin LaHood (IL-18) for asking the U.S. Treasury Department to raise the threshold for reporting slot tax winnings from $1,200 to $5,000.
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 production while the patron is required to complete a W-2G tax reporting form. While slot jackpots have steadily increased with inflation over the past several decades, the $1,200 threshold that triggers the issuance of tax forms has remained static since it was established in 1977. A $1,200 jackpot in 1977 would be equivalent to more than $5,000 today if adjusted for inflation.
Because the threshold hasn’t tracked with inflation, there has been a significant increase in the number of reportable jackpots, causing more operational inefficiencies and adding to the sea of W-2G forms currently flooding an underbudgeted and understaffed IRS each year.
“Casinos are the only businesses that must take their assets out of production to comply with their tax information reporting obligations. The current federal regulations on reporting slot machine winnings have been outdated for decades, creating inefficiencies, paperwork and unnecessary hurdles,” said Bill Miller, president and chief executive officer of the American Gaming Association. “The gaming industry strongly supports the efforts of Reps. Titus and LaHood to update the antiquated threshold for reporting slot machine winnings while relieving associated burdens for casinos, their patrons and the IRS alike.”
In a February 6, 2019 letter to Congress, Miller listed raising the current slot tax reporting threshold to $5,000 as one of AGA’s top priorities for the 116th Congress.
The American Gaming Association is the premier national trade group representing the $261 billion U.S. casino industry, which supports 1.8 million jobs nationwide. AGA members include commercial and tribal casino operators, gaming suppliers and other entities affiliated with the gaming industry. It is the mission of the AGA to achieve sound policies and regulations consistent with casino gaming’s modern appeal and vast economic contributions.