It was back in 1977 when a bill became law in the United States that required casinos to report to the IRS players who win a jackpot of $1,200 or more. In 1977, that was considered a lot of money, but not so much in 2022. Several members of the Gaming Caucus in the House of Representatives have co-sponsored a bill that would raise that limit to $5,000, a figure still not equal to the ’77 level of $1,200 when you account for inflation.
But $5,000 would allow the casinos to avoid the paperwork and red tape that halt a player’s enjoyment of the jackpot with the previous limit, which often can take 30 minutes or more. Last week, Nevada Representatives Democrats Dina Titus and Steven Horsford and Republican Mark Amodei, , were joined by Pennsylvania’s Guy Reschenthaler, and Maryland’s Anthony Brown in introducing the Shifting Limits on Thresholds (SLOT) ACT.
The effort has been a priority of the American Gaming Association for a few years, but it rarely reached the traction that it did last week.
“Today’s legislation is an important and commonsense step to modernize gaming regulations while supporting our industry’s full recovery,” stated American Gaming Association President and CEO Bill Miller. “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Gaming Caucus, are important champions of our industry and I appreciate their relentless efforts to address this outdated rule.”
Titus said the time has come to update the regulation.
“The current threshold for reporting slot winnings was set at $1,200 in 1977 and has not been updated in the 45 years since. If indexed for inflation, the threshold would be around $5,000. Due to inflation, the number of jackpots hitting that threshold, triggering a shutdown of the machine and necessitating excessive paperwork requirements for the patron, has increased dramatically,” said Titus. “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.”
In Pennsylvania, where gaming has expanded rapidly Reschenthaler says the lower limit hurts his state.
“The 1977 slot jackpot reporting threshold hurts both Pennsylvania’s gaming industry and its patrons,” he 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.”
In Nevada, Virginia Valentine, president of the Nevada Resort Association, said the bill would remove friction between the patrons and the casinos.
“It’s incredibly overdue and will be a welcomed move by guests and the resort industry as it reduces paperwork and streamlines the process for certain jackpots,” she said. “Any time you can make a process smoother and more efficient, it enhances the overall customer experience and increases the likelihood of a return visit.”
