Threshold for tax reporting from slot wins raised by Trump tax bill
Tucked away in the nearly 900-page mega tax-and-spending bill is a provision that raises the minimum win slot-machine win that requires hand-payments and tax reporting at casinos.
Signed into law on July 4, the One Big Beautiful Bill Act lifts the maximum win before casinos must issue a WG-2 form and shut down the machine to $2,000, up from the long-time figure of $1,200 and ties the threshold to inflation.
The section takes effect in 2026 with the inflation index starting in 2027.
American Gaming Association Senior Vice President of Government Relations Chris Cylke praised the provision to the gambling industry trade publication SBC Americas.
"Raising the slot tax reporting threshold to $2,000 and indexing it to inflation is a long-overdue modernization that reduces regulatory burdens and improves the customer experience," Cylke said.
The association noted in a 2022 press release that the $1,200 threshold was created in 1977. A Bureau of Labor Statistics inflation calculator indicates that the threshold would be over $6,600 in June of 2025 if it had been tied to inflation.
Nevada Rep. Dina Titus (D) told Las Vegas CBS affiliate KLAS that the provision does not go far enough.
'While raising the slot reporting threshold to $2,000 is a step in the right direction, it is still inadequate," Titus, a champion of the SLOT Act that would raise the threshold to $5,000, explained. "The IRS Advisory Council recommended this threshold be raised over $5,000 and indexed to inflation."
On the losing side, gamblers will be taking a hit courtesy of a separate tax provision in the newly created law.
Starting in 2026, gamblers winning $1,000 can only deduct 90% of their losses, down from a previous 100% deduction.
The amount of losses players can deduct is limited to their winnings, and deductible losses cannot exceed total winnings for the year.
Titus introduced the My FAIR BET Act on July 7 to restore the 100% deduction for gamblers.
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