Federal Legislation Filed To Raise 'Outdated' Tax Threshold On Slot WinsNew Reporting Threshold Would Be $5,000 |
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On March 3, a group of federal policymakers from casino states announced the introduction of a new bill to raise the IRS reporting threshold on slot winnings.
Representatives Dina Titus (Nevada), Guy Reschenthaler (Pennsylvania), Anthony Brown (Maryland), Mark Amodei (Nevada), and Steven Horsford (Nevada) introduced the Shifting Limits on Thresholds (SLOT) ACT.
“The current threshold for reporting slot winnings was set at $1,200 in 1977 and has not been updated in the 45 years since," Rep. Titus said in a statement. "If indexed for inflation, the threshold would be around $5,000. Due to inflation, the number of jackpots hitting that threshold, triggering a shut down of the machine and necessitating excessive paperwork requirements for the patron, has increased dramatically.
“This creates an unnecessary burden on the gaming industry, an economic driver for Southern Nevada and other communities nationwide where slot machines exist. While I believe appropriate taxes should be collected on winnings, raising the threshold would reduce paperwork and ensure this is accomplished more efficiently.”
Rep. Reschenthaler added: “The 1977 slot jackpot reporting threshold hurts both Pennsylvania’s gaming industry and its patrons. Because the threshold has not kept up with inflation, it has resulted in a drastic increase in reportable jackpots, which trigger tax burdens for winners and compliance burdens for casinos. Increasing the threshold will eliminate this onerous red tape."
The proposal has the backing of the American Gaming Association.
“Today’s legislation is an important and commonsense step to modernize gaming regulations while supporting our industry’s full recovery,” stated AGA President and CEO Bill Miller.
Rep. Brown of Maryland said in a statement:
“We need to ensure our tax code is keeping up with the times, particularly when it comes to the gaming industry. Updating a 45-year-old threshold on slot winnings is common sense and good governance, that both reflects the decades of economic changes since 1977 and reduces excessive paperwork and reporting requirements."
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