Congressional Gaming Caucus Co-Chairs Guy Reschenthaler (R-PA) and Dina Titus (D-NV) have introduced legislation increasing the tax threshold for slot winnings from $1,200 to $5,000.
The Shifting Limits on Thresholds (SLOT) Act would address outdated bipartisan legislation as well as the threshold that has not been updated in 45 years.
“The 1977 slot jackpot reporting threshold hurts both Pennsylvania’s gaming industry and its patrons,” Reschenthaler, who also serves as Chief Deputy Whip, 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.”
According to bill proponents, the IRS set the tax reporting threshold in 1977 for a jackpot win at a casino at $1,200. The measure would provide a mechanism for future increases based on inflation.
“Updating a Reagan-era gaming regulation is not just a priority for my constituents in Las Vegas, it is a commonsense fix that affects the growth of legal gaming in local and Tribal communities across the country,” Titus said. “Shutting down slot machines for low-dollar amounts pushes people toward the illegal market, and flooding the IRS with automated, outdated forms helps no one. This legislation would reduce the paperwork burden on businesses and players while ensuring our tax code reflects economic reality.”
Indian Gaming Association Chairman Ernest L. Stevens Jr. said tribal gaming is experiencing tremendous post-COVID growth, and the Treasury Department’s slot reporting requirement is a regulatory burden on the tribal gaming industry.