December 29, 2016
The Internal Revenue Service released its final regulation Thursday on its 2015 proposal for tax reporting of slot winnings. The American Gaming Association claims the regulation is a win for the gaming industry.
The IRS was considering mandating electronic player tracking as well as cutting the slot jackpot reporting threshold from $1,200 to a possible $600. The final regulation dropped both proposals.
“On the optional aggregation method, payee ID, and other provisions, the final regulation appears to incorporate many of AGA’s technical suggestions, such as use of gaming day for optional aggregation,” the AGA said in a statement.
AGA President and CEO Geoff Freeman said in a statement that states and local governments would have received fewer gaming tax dollars as a result of “what would have been burdensome federal requirements.”
The AGA had been in conversations with the IRS since 2015 working to oppose mandated electronic player tracking as well as a lowering of the jackpot reporting threshold.
“We look forward to continuing to work with the IRS and our federal partners to modernize regulations and protect millions of casino customers around the country,” Freeman said.