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Tag: SLOT Act

  • Nevada’s Handpay Reduction Act • This Week in Gambling

    Nevada’s Handpay Reduction Act • This Week in Gambling

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    You may have heard that the IRS is thinking of raising the reporting threshold for slot jackpots. But even if they don’t, the Handpay Reduction Act being could raise the reporting limit anyway. Representatives Dina Titus of Nevada and Guy Reschenthaler of Pennsylvania have brought forth a bill which would mandate a change if the IRS failed to act on the matter. Titus has been advocating for this regulatory change, introducing bills in 2020 and 2022, albeit without advancing past the committee stage.

    Recent developments, however, seem to suggest that pushing the Handpay Reduction Act  may be unnecessary. In November, the IRS Advisory Council recommended raising the threshold for automatic W2-G filings, potentially obviating the need for a new law.  Titus and Reschenthaler have lobbied the IRS to increase the reporting threshold for slot jackpot winnings. Last year, they introduced the Shifting Limits on Thresholds, or SLOTAct, to pressure the issue, proposing to elevate the tax threshold for slot winnings from $1,200 to $5,000.

    Titus emphasized the importance of updating antiquated gaming regulations, not only for her constituents in Las Vegas but also for fostering legal gaming growth in local and Tribal communities nationwide, as conveyed to Casinos.com. She highlighted how the outdated $1,200 standard imposes significant compliance burdens on taxpayers and operational costs on casinos nationwide due to inflationary pressures.

    The IRS Advisory Council now endorses this proposal contained within the Handpay Reduction Act, suggesting a threshold of $5,800 to accommodate inflation properly. Furthermore, the Council advises the IRS to establish a mechanism for regularly adjusting this threshold to reflect inflation accurately. Time will tell how this plays out, but players should be optimistic about where this is moving.

     

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  • SLOT Act Could Change Jackpots Forever • This Week in Gambling

    SLOT Act Could Change Jackpots Forever • This Week in Gambling

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    What’s the only bad thing about winning a jackpot? The taxes! But now, the SLOT Act could help lessen some of that pain. Two Congressional Representatives, one from Nevada and the other from Pennsylvania, are pushing legislation to raise the reporting limit for jackpots.

    Currently, anyone who wins a jackpot at a slot machine or on video poker is required by the IRS to report amounts of $1,200 or more. However, the SLOT Act would raise that limit to match the rate of inflation, which would set the updated threshold at $5,000. Additionally, the legislation has a provision to keep up with the rate of inflation int he future.

    This most recent effort to raise to amount for reporting jackpot winnings has found the full support of the American Gaming Association, and surprisingly the IRS Advisory Council also agrees. These  recommendations to raise the threshold would reduce the paperwork for the IRS while keeping the tax code in line with the economy.

    “This is a commonsense update to tax policy that creates a better patron experience, reduces burden on the IRS, and supports gaming’s economic impact in communities,” said AGA President and CEO Bill Miller. And considering that the current $1,200 reporting limit on jackpot winnings has been in place since 1977, it’s safe to say an update is not only needed, but warranted.

    It’s worth noting that the SLOT Act  has also garnered the support of the Indian Gaming Association. Their Chairman, Ernest L. Stevens Jr, recently stated that by changing the reporting threshold, the IRS would effectively be “…removing this outdated and costly burden on our daily Tribal gaming operations.”

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