IRS Jackpot Reporting Threshold Set to Increase to $2000

The threshold for reporting slot machine jackpots to the IRS, currently set at $1,200, is set to increase to $2,000 as part of the One Big Beautiful Bill Act. This adjustment will also tie future increases to inflation. However, this change won't take effect until the IRS updates its regulations to reflect the new threshold. This process involves federal agencies writing the regulations needed to implement laws passed by Congress.

As the IRS has not yet provided a comment or guidance on this change, casino operators, especially in Las Vegas, are awaiting further direction. Major operators such as MGM Resorts International and Caesars Entertainment have not received any official notification from the IRS regarding the updated threshold.

The American Gaming Association, representing the casino industry, has expressed approval of the change, noting that it modernizes the system by reducing regulatory burdens and improving the customer experience. The current $1,200 threshold has been in place since 1977, and the increase to $2,000 is seen as a significant update.

Separately, the Shifting Limits on Thresholds (SLOT) Act, introduced by U.S. Rep. Dina Titus and U.S. Rep. Guy Reschenthaler, aimed to raise the threshold to $5,000 and index it to inflation, but it has not advanced since its introduction. Additionally, in 2023, the IRS's advisory council recommended increasing the threshold to $5,000 and indexing it to inflation, aligning with the proposal in the SLOT Act.