May 08, 2023

Reschenthaler, Titus Introduce Bipartisan Bill to Raise Tax Threshold on Slot Winnings

WASHINGTON, D.C. – Chief Deputy Whip Guy Reschenthaler (R-PA) and Representative Dina Titus (D-NV), co-chairs of the Congressional Gaming Caucus, introduced the Shifting Limits on Thresholds (SLOT) Act, bipartisan legislation that would raise the outdated tax threshold for slot winnings from $1,200 to $5,000.
“The 1977 slot jackpot reporting threshold hurts both Pennsylvania’s gaming industry and its patrons,” said Reschenthaler. “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.”
“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,” said Titus. “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down slot machines for low-dollar amounts pushes people toward the illegal market, and flooding the IRS with automated, outdated forms helps no one.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.”
“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 American Gaming Association President and CEO Bill Miller. “We are grateful for Rep. Titus and Rep. Reschenthaler’s leadership on this important industry priority to address the antiquated slot tax threshold.”
“Tribal gaming is experiencing tremendous post-covid growth and the Treasury Department’s slot reporting requirement is a regulatory burden on our tribal gaming industry,” said Ernest L. Stevens Jr., Chairman of the Indian Gaming Association. “On behalf of the Tribal Membership at the Indian Gaming Association, I would like to acknowledge Representative Titus and Representative Reschenthaler for their commitment towards removing this outdated and costly burden on our daily Tribal gaming operations.”
In 1977, the IRS set the tax reporting threshold for a jackpot win at a casino at $1,200. That threshold has not been updated in the 45 years since, and if indexed for inflation, it would be around $5,000 today.
The SLOT Act would increase the tax reporting threshold for slot jackpots to $5,000 and provide a mechanism for future increases based on inflation.
Pennsylvania ranks second in the nation for total gaming revenue generated, grossing $4.83 billion in 2021.
Reschenthaler and Titus first introduced the SLOT Act in the 117th Congress.
Read the full text of the bill here.