The American Gaming Association (AGA) has recognised Representatives Dina Titus and Darin LaHood for their campaigns towards raising the threshold for reporting slot tax winnings from $1,200 to $5,000.
Under federal law, casino patrons were previously obliged to report any slot machine winnings upwards of $1,200 or more, while the machine was removed from the casino and the patron signs a W-2G tax reporting form.
But following the work of Titus and LaHood, the threshold of which patrons now have to report winnings upwards of $5,000.
“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 The current federal regulations on reporting slot machine winnings have been outdated for decades, creating inefficiencies, paperwork and unnecessary hurdles,” said Bill Miller, president and chief executive officer of the American Gaming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.”
Slot jackpots have gradually increased with inflation over recent years, however the $1,200 threshold has remained static since it was established in 1977. 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 that the IRS have to deal with in each year.
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.