Since 1977—when Nevada was the only state offering legal gaming—-the tax reporting threshold for slot machine jackpots has been $1,200, and lawmakers from the state have long advocated for an increase, given the increased burden on both operators and players as well as economic factors such as inflation.
State Rep. Dina Titus has been lobbying the Internal Revenue Service (IRS) to increase the threshold since 2015, and until recently, had not garnered much support. She and Pennsylvania Rep. Guy Reschenthaler co-chair the Congressional Gaming Caucus (CGC), a committee of lawmakers concerned with gaming issues.
Last November, however, the IRS Advisory Council made a surprise decision, saying that the number should in fact be raised all the way to $5,800, which is $800 more than what the CGC had lobbied for. The announcement was only recently made public.
In its decision, the council maintained that the change should be enacted through regulatory action, since that was how it was established originally. Currently, whenever a jackpot exceeds the threshold, machines typically shut down until requisite tax forms are completed.
In an interview with the Nevada Independent, Titus said that previously proposed legislation is no longer needed given the council’s decision, and urged IRS Commissioner Danny Werfel to accept the ruling and enact the update via regulatory protocols.
The agency did not give comment on the matter, but American Gaming Association CEO Bill Miller told the newspaper that “The antiquated slot tax threshold creates unnecessary burdens for consumers, casino operators and the IRS.”
