Legislation would raise tax threshold for slot machine winnings
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Legislation recently introduced in the U.S. House of Representatives would raise the tax threshold for reporting slot winnings to the Internal Revenue Service from $1,200 to $5,000.
U.S. Reps. Guy Reschenthaler (R-PA) and Dina Titus (D-NV), Congressional Gaming Caucus co-chair-members, introduced the Shifting Limits on Thresholds (SLOT) Act.
The current threshold had not been adjusted since 1977. When someone hits that threshold, the casino or business must shut down the machine and demand the customer fill out IRS paperwork for the winning.
“The 1977 slot jackpot reporting threshold hurts both Pennsylvania’s gaming industry and its patrons,” Reschenthaler said. “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, ensuring the gaming industry can continue to support good-paying jobs and foster economic growth in southwestern Pennsylvania and across the country.”
“Today’s legislation is an important and commonsense step to modernize gaming regulations while supporting our industry’s full recovery,” American Gaming Association President and CEO Bill Miller said. “Representatives Titus and Reschenthaler, along with the Congressional Gaming Caucus, are important champions of our industry and I appreciate their relentless efforts to address this outdated rule.”
