US Congressional leaders supported over slot tax threshold

Article by : Charles Perrin Feb 22, 2024

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US Congressional leaders have made serious headway in their efforts to raise the tax reporting threshold on wins gained by players on slot machine jackpots.

Rep. Guy Reschentaler (R-PA) and Rep. Dina Titus (D-NV) have been campaigning for nearly a decade to increase the threshold, and now they have received support from an unlikely source — the IRS’ Advisory Council (IRSAC).

As co-chairs of the bipartisan Congressional Gaming Caucus, Reschentaler and Titus were the masterminds behind the Shifting Limits on Thresholds (SLOT) Act last year, and the legislation proposed increasing the threshold from $1,200 to $5,000.

The current ruling has been in place for 47 years, but its critics have dismissed the threshold as being antiquated and even “burdensome” for players.

The IRSAC has taken on board the proposal, recommending the tax threshold should be boosted to $5,800 to take into account inflation changes, and is $800 more than what the Congressional Gaming Caucus initially asked for.

In a letter written to the IRS Commissioner Danny Werfel earlier this month, the Congressional leaders spelled out their intentions.

The letter read: “We urge you to follow the IRSAC’s recommendation and exercise your authority to raise the threshold for slot machine jackpot winnings to $5,000 and to consider periodic increases to the threshold based on inflation.

“Taking this action will align with the IRS initiative to strategically use data to improve tax administration and modernize tax reporting for our constituents.”

Now, 44 states have commercial casinos or casinos operated by Indian tribes, and while exceeding the tax threshold is a common sight on slot floors, Congressional leaders are trying to simplify the process.

As things stand, slot machines would shut down until a player has filed the requisite W-2G tax form.

The AGA (American Gaming Association) has also lent its support to the cause, and the tax threshold could be adjusted again based on the cost of living. In the meantime, this development will be warmly received by slot enthusiasts.