American land based casinos, supported by the American Gaming Association, have a new battle ahead of them as the IRS proposes to reduce the tax threshold for reporting gambling wins.
All winnings of $1,200 or more must be reported and this rule has been in place for 40 years but now the IRS wants winnings on slots, keno and bingo of $600 to become taxable.
The AGA says that this proposal is unnecessary and creates more work, which could be a disadvantage for the gambling industry when competing with other forms of entertainment.
Gaming machines currently lock when a player win $1,200 or more and lowering the limit will cause more frequent delays and more paperwork for the casinos and players.
Eric Schippers, senior vice president of public affairs for Penn National Gaming said: “This would have a very negative impact on business. If anything, the reporting threshold should be increased to account for inflation.”
At the moment, this is only a proposal with interested parties invited to weigh in on the topic over the next 3 months.
catapultaudio
9 years ago
Wow, a HALVING of the tax free allowance seems pretty harsh! And just $600, I have always thought that the American system of taxing land based winnings was flawed anyway as it fails to take into account the amount a player has wagered in order to reach their win - a player could easily have wagered $600 before hitting...
Wow, a HALVING of the tax free allowance seems pretty harsh! And just $600, I have always thought that the American system of taxing land based winnings was flawed anyway as it fails to take into account the amount a player has wagered in order to reach their win - a player could easily have wagered $600 before hitting their first big bonus on the slots, so having to pay tax on the winnings is just a big con....
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pinkxxx
9 years ago
This would be a huge pain in the azz for casinos and the players. Ive hit JP's and you have to wait along time for them to come around with the papers to sign and do . Its bad enough they wanted to tax those winnings , now they want to take a percentage of anything 600 hundred and above . I think it will discourage a lot...
This would be a huge pain in the azz for casinos and the players. Ive hit JP's and you have to wait along time for them to come around with the papers to sign and do . Its bad enough they wanted to tax those winnings , now they want to take a percentage of anything 600 hundred and above . I think it will discourage a lot of people to visit land casinos . Would create a lot more back log on machines and now you would lose more to Uncle Sam , that's just crazy . I never liked the 1400 hundred rule . you could actually make more by hitting a lot of machines for 300 a piece and not getting taxed on them or deal with the eternal wait . Hopefully this new rule doesn't fly .
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