Federal legislation would raise tax threshold for slot machine winnings

Chief Deputy Whip Guy Reschenthaler (R-PA) and U.S. Rep. Dina Titus (D-NV), co-chairs of the Congressional Gaming Caucus, recently introduced legislation in the U.S. House of Representatives that would raise the tax threshold for slot machines winnings.

The Shifting Limits on Thresholds (SLOT) Act would raise the limit from $1,200 to $5,000 and provide a mechanism for future increases based on inflation. The last time the threshold was raised was in 1977.

“The 1977 slot jackpot reporting threshold hurts both Pennsylvania’s gaming industry and its patrons,” Reschenthaler said. “Because the threshold has not kept up with inflation, it has resulted in a drastic increase in reportable jackpots, which trigger tax burdens for winners and compliance burdens for casinos. Increasing the threshold will eliminate this onerous red tape, ensuring the gaming industry can continue to support good-paying jobs and foster economic growth in southwestern Pennsylvania and across the country.”

In 2021, Pennsylvania grossed $4.83 billion in gaming revenue — the second-highest in the nation.

The bill has the support of the American Gaming Association and the Indian Gaming Association.

“This is a commonsense update to tax policy that creates a better patron experience, reduces burden on the IRS, and supports gaming’s economic impact in communities,” Bill Miller, president and CEO of the American Gaming Association, said.