Washington, DC – The American Gaming Association (AGA) is expressing serious concerns with a potential Internal Revenue Service (IRS) proposal that could aim to reduce the tax reporting thresholds for casino visitors from $1,200 to $600 for gaming winnings. The IRS issued proposed regulations and an official Notice updating the tax information reporting rules for players’ slot winnings (as well as keno and bingo).
The IRS will be accepting public comments over the next 90 days regarding current threshold levels, and considering whether amounts should be uniform for bingo, keno and slot machine play. The AGA Tax Working Group, comprised of senior tax representatives from AGA member companies, will submit comments to the IRS on behalf of the industry.
“Not only would this potential policy change create additional burdensome and unnecessary reporting requirements for gaming companies, but it could also cost states millions of dollars in revenues that support vital public services,” said Sara Rayme, senior vice president of public affairs of the AGA. “Rather than going backwards, the gaming industry seeks forward-looking policies that enable our industry to reinvest, innovate and create more jobs.”
Gaming in the U.S. is a $240 billion industry that supports 1.7 million jobs and generates $38 billion in taxes across 40 states.
The AGA is working to facilitate industry consensus and to advocate for rulemakings that benefit and protect casino gaming, its employees and the communities it benefits. It is policy proposals such as this one that the AGA will address under its “Next Generation Gaming” platform that seeks to streamline regulations, remove barriers to innovation and allow regulators to be more nimble as the gaming landscape continues to evolve.
The IRS’s proposed regulations currently do not alter commercial casinos’ reporting thresholds from the existing levels for winnings from keno, bingo and slot machine play (other than electronically tracked slot machine play). However, the IRS may consider future additional regulations that could reduce the reporting thresholds.
About AGA: The American Gaming Association is the premier national trade group representing the $240 billion U.S. casino industry, which supports 1.7 million jobs in 40 states. AGA members include commercial and tribal casino operators, suppliers and other entities affiliated with the gaming industry. It is the mission of the AGA to be the single most effective champion of the industry, relentlessly protecting against harmful and often misinformed public policies, and paving a path for growth, innovation and reinvestment.