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IRS proposal to change HandPay Jackpots to $600
Monday March 9,2015 : U.S. CASINOS FIGHT I.R.S. ATTEMPT TO LOWER WIN REPORTING THRESHOLD
American players who win $600 or more on slots, bingo and keno may now be required to report the windfall to the taxman.
US land casino companies, backed by the American Gaming Association, are lobbying against an IRS proposal to change the tax code in order to lower the threshold for gambling win reportage.
The current threshold of $1,200 has been in place for the past 40 years despite inflationary trends, but the taxman wants to cut it by half, requiring casinos and players to report wins on slots, keno and bingo of $600 or more as taxable income.
The AGA claims that the change is unwanted and unnecessary; creating additional administrative burdens that could place the gambling industry at a competitive disadvantage with other forms of entertainment.
The US taxman currently requires land casinos to lock machines where a win in excess of $1,200 has been made ($1,500 in the case of a keno jackpot) until tax reporting documents are completed, after which the game is reset.
By chopping the threshold in half, there will be more machine stoppages whilst staff fills out the necessary forms on the player wins.
Eric Schippers, senior vice president of public affairs for Penn National Gaming, which operates 29 casinos across America, said: “This would have a very negative impact on business. If anything, the reporting threshold should be increased to account for inflation.”
The changes are at present only a proposal, with interested parties invited to comment within the next 3 months.
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