The American Gaming Association has publicly supported the reintroduction the Shifting limits on Thresholds Act (SLOT), which updated reporting thresholds for winnings from slot machines.
Last week, Congresswoman Dina T. Titus and Congressman Guy Reschenthaler announced their decision to reintroduce legislation. They are both Co-Chairs for the bipartisan Congressional Gaming Caucus that will be relaunched by 2020.
The platform is used to educate Congressional members on regulatory and legislative issues related to US casino industry, and to discuss federal policies. Its latest verdict would also update a reporting threshold that has been in place for nearly 50 years.
Bill Miller , AGA’s President and CEO, said: “This is an update of tax policy that makes sense, improves the patron experience, and reduces the burden on IRS.”
We are thankful for Rep. Titus’ and Rep. Reschenthaler’s leadership in addressing this important industry priority of reducing the antiquated tax threshold on slot machines.
According to the Congressional Gaming Caucus, the current system requires that slot machines be taken out of operation every time a threshold is reached. This creates ‘unnecessary obstacles’ in the legal gambling experience.
It could also lead to a shift in customers from the legal market to the illegal one, resulting in less tax revenue as well as more law-breaking.
Rep. Titus stated that updating a Reagan-era gambling regulation was not only a priority for his constituents in Las Vegas but also a fix of common sense which affects the growth and expansion of legal gaming across local communities and Tribal Communities in the United States.
The IRS is not helped by a flood of outdated, automated forms. Shutting down slot machines that pay low amounts only pushes people to the illegal market. This legislation would ease the burden of paperwork on players and businesses while also ensuring that our tax code reflects current economic realities.
Ernest L. Stevens Jr. Chairman of the Indian Gaming Association said: “I would like to thank Representative Titus, for her reintroduction the SLOT Act. Tribal gaming has experienced a tremendous growth post-covid, and the Treasury Department’s slot reporting requirements are a regulatory burden for our tribal gaming industry.
“On behalf the Tribal Membership of the Indian Gaming Association I would like acknowledge Representative Titus (PA-14) and Representative Guy Reschenthaler for their commitment to removing this outdated, costly burden on the daily Tribal gaming operations.”
The new threshold will be $5,000. This is a substantial increase from the $1200 threshold that has been in place since 1977. It also indexes it to inflation.
Rep. Reschenthaler said: “The 1977 reporting threshold for slot jackpots hurts both Pennsylvania gaming industry and patrons.” The threshold hasn’t kept pace with inflation and has led to a dramatic increase in the amount of jackpots that can be reported, resulting in tax burdens on winners as well as compliance burdens on casinos.
The increase in the threshold will remove this burdensome red tape and ensure that the gaming industry continues to provide good-paying employment and promote economic growth across the United States.
