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Another Effort to Raise Reporting Threshold from $1,200 to $5,000 for Slot Wins

Discussion in 'Casino Industry & Development' started by win4me, May 21, 2020.

  1. win4me

    win4me High-Roller

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  2. win4me

    win4me High-Roller

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    Here is the LVRJ article content (for those who do not have access)

    For years, the gaming industry has sought a change in the requirement that gamblers winning a slot jackpot of $1,200 or more receive a W-2G tax form showing those winnings as taxable income and reporting the amount to the Internal Revenue Service. But it’s never been adopted.

    The administration’s executive order is giving the AGA the opportunity to to try again.

    “As the gaming industry safely reopens and seeks to return to financial health, one critical area of regulatory reform the administration should consider is modernizing the $1,200 slot jackpot reporting threshold, which has been in place since 1977,” Bill Miller, president and CEO of the AGA, said in a statement Wednesday. “The current threshold is outdated and imposes significant compliance burdens on both the Internal Revenue Service and the gaming industry.”

    Miller said that through inflation, the $1,200 jackpot reporting threshold is equivalent to about $5,000 in today’s dollars — and that’s the amount the AGA sought as a new threshold when the association petitioned the Department of the Treasury to make a change.

    “This policy change, supported by bipartisan members of Congress, was already long overdue prior to the pandemic, and now has additional importance as the gaming industry emerges from this crisis,” Miller said.

    Reps. Dina Titus, D-Nev., and Darin LaHood, R-Ill., a year ago asked the Treasury Department to change the threshold from $1,200 to $5,000.


    “The increased threshold would not only enable the IRS to focus its limited enforcement resources on those taxpayers who are most likely to have net slot winnings at the end of the taxable year, but would also significantly reduce close interactions required between gaming employees and patrons to issue tax forms,” Miller said.

    (edited for copyright)
     
    Last edited by a moderator: May 21, 2020
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  3. Kisby

    Kisby Low-Roller

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    I'd love to see this happen!

    And thank you, win4me, for copying the article for us! Makes it much easier to read.
     
    Buddy Trip!
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  4. Paul K

    Paul K VIP

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    This would make a lot more sense.
     
  5. redfury

    redfury Low-Roller

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    Hmmmmm hopefully just in time for my upcoming $4,995 hand pay I’m expecting in a couple of weeks ;)
     
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  6. rob889

    rob889 High-Roller

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    Wish it was $5000.01+ but I'd still settle on $5000
     
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  7. notfromconcentrate

    notfromconcentrate Connoisseur of dive casinos and obnoxious outfits

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    Although I don't think I'll ever win a jackpot that big with the way I roll, I actually very much agree with this. You see plenty of $5,000 payouts in high limit slots (e.g., ten-credit "any bar" hits on $500 machines, 1,000 credit hits on five-line $5 machines), but very few odd numbers above that like $5,100 or $6,000. So for the sake of reducing hassle/busy work, I'd say that $0.01 could very much make a difference.
     
  8. rob889

    rob889 High-Roller

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    Or just change the verbage to anything >$5000
     
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  9. mescalita

    mescalita old and in the way...

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  10. Bertieboy

    Bertieboy Tourist

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    Would love to see how much the states would stand to lose from this move. I live in one of only 10 states which does not allow individuals to deduct loses on their income taxes, it continues to anger me coming back from LVS with lots of W2s but still losing money and then having to pony up for the state income tax!
    Bert CT
     
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  11. zignerlv

    zignerlv VIP Whale

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    The same organization proposed this change in the recent past. I don't expect the outcome to be any different this time. I'd love to be wrong.

    Bertieboy's point is a good one. Those states will be speaking up against the change, as it hits their revenues at a time where most states budgets are suffering.
     
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  12. Joe

    Joe VIP Whale

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    Wisconsin started a state run lottery about 30 years ago. Shortly after, they dropped the deduction for gambling loses.
     
    Last edited by a moderator: May 23, 2020
  13. bdautch

    bdautch VIP Whale

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    I could have lived with the original legislation, if only it had been indexed. It's not that hard to peg a bill to inflation.
     
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  14. vegasdev

    vegasdev VIP Whale

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    They got my vote!
     
  15. Ally Vegas

    Ally Vegas Tourist

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    My gambling would increase. I am Canadian and play lower than I do at home, because I was getting to many $1200-1400 wins to make it "worth it".

    After currency exchange and 30% tax withholding, it's just expensive. I know I can get it back if I do taxes, but that means I HAVE to lose and I go ( rather unsuccessfully!), to win!!!
     
  16. nostresshere

    nostresshere Mr. Anti Debit Card

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    There is one way this could pass - thanks to COVID-19.

    With the next big stimulus bill, it could get slipped in there. Only a sentence or two changing the rules.

    Congress generally is less likely to pass a stand-alone bill like this, but maybe one little add on to the next bill could work - all in efforts to help the gaming industry and reduce tax bookwork and burden. And smart congressman could point out that most people already do the counter balancing deduction, so not big skin off the revenue side of the budget.
     
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  17. RushAndRoulette

    RushAndRoulette Low-Roller

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    Pros: Less W2-G's being generated on the floor means less stoppage of play for Collecting info from gamblers and less unnecessary contact between Employees and Gamblers. This is something that totally can be automated and should be for public health reasons.
    Cons: Less W2-Gs mean less people will voluntarily claim wins on their taxes, and those who do not itemize and would normally get a W-2G will actually see their taxes go down if they opt not to report the gambling gains. Less gambling wins claimed equals less taxes paid to the government...Wait...this is a con?

    Just do it already.
     
    Maybe a NFL betting weekend? Or ping pong betting?
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  18. woodsie

    woodsie VIP Whale

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    It's a good start, but...(WARNING: personal opinion inbound)...gambling winnings shouldn't be taxable at all.

    It's wrong to tax negative expected return gambling transactions in principal. Gamblers aren't engaged in an economically productive activity to begin with. Unlike going to work, running a business, or investing in stocks, casino gambling has no reasonable expectation of generating any kind of positive return for gambler's as a group. The IRS is literally taking swipes at variance, not their share of the value created by some economically productive activity.

    My opinion only. Opinions by their very nature are not fact and many can exist with the same universe. :thumbsup:
     
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  19. thebeachbum

    thebeachbum Low-Roller

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    I ain't holding my breath on this one.
     
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  20. Chuck2009x

    Chuck2009x VIP Whale

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    This has a long distinguished career of going nowhere.

    The last time the IRS made a proposal, it was to lower the threshold to $600.

    It's not a sympathetic cause, especially after $2T stimulus has been chucked out there and another $1 or $2T is probably coming.
     
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