What happens when players hit slot wins? Eben a modest win, like $1,200? Well, besides a nice dinner, you get to pay taxes. Currently, the threshold for any slot player who wins a jackpot of $1,200 or more is required to complete a W-2G tax reporting form. During this time, guests cannot play the machine.
Bill Miller, president and CEO of the American Gaming Association, thinks it’s about time for a change to the policy. “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. The current threshold is outdated and imposes significant compliance burdens on both the Internal Revenue Service (IRS) and the gaming industry.
As Miller noted, the slot jackpot reporting threshold has remained unchanged since it was instituted in 1977 – 43 years ago. A $1,200 jackpot in 1977 would be equivalent to more than $5,000 today if adjusted for inflation.
Read more about how your slot wins are taxed at Play Pennsylvania.
