If lawmakers listen to Rep. Dina Titus.
Archaic Reporting Threshold
Titus introduced a bill last year to increase the reporting threshold, but it was not supported by the Senate. Titus is now determined to push the issue forward and reduce the amount of paperwork required for casinos. This will also help customers who are waiting to receive their winnings.
According to Titus, the Review-Journal, “There was a time that we tried to get the Treasury Department do this through regulation. But they never moved.”
The current policy, which was adopted in 1977, states that any jackpot win exceeding $1,200 must be reported to the Internal Revenue Service (IRS) via a W-2G form.
Titus is a co-chair for the Congressional Gaming Caucus and believes that this threshold, which was originally implemented 46 years ago, should be revised to reflect the changes in the world over time. This will also reduce the paperwork burden on operators.
She is calling for bipartisan support of her proposal to raise the reporting threshold from $5,000 to index it to annual inflation. Additionally, she believes that it could be supported by states with tribal or commercial gaming. She is also determined to make it a cause not only in Las Vegas (her legislative District includes the Strip), but for everyone.
“Drain on the Customer”
The procedure for a player to win a jackpot on a casino slot machine is currently that the machine must be removed from the site after it has been checked by attendants and verified that the winner is the one who won. It is possible that the process may take longer than expected due to other duties or casino personnel. In these cases, patrons can wait for up to hours.
Alex Costello (Vice President of Government Relations for the American Gaming Association) stated that it “drains the consumer” and “takes a bit off the tires.” He also said that operators will have to comply with the rules.
According to last available statistics, more than 15,000,000 W-2G forms were filed with the IRS in 2020. The sector is now recovering from the pandemic lows and the jackpots are likely to rise.
Titus stated that the measure should be a priority for all members of Congress. She expects the House to pass the proposal and then senators from Nevada will take the initiative to win Senate approval.