American Gaming Association urges President Trump to revise tax threshold on slots
The American Gaming Association (AGA) has once again urged President Donald Trump’s administration to review and update its old-fashioned gaming tax policy, including tax threshold on slots. Earlier this week, President Trump signed an executive order asking concerned federal agencies to review and repeal, either temporarily or permanently, any gaming regulation that may cause the economic recovery to stagnate after the COVID-19 crisis.
In case a gamer wins $2,000 jackpot at a casino, the casino would give the gamer a tax
Form to fill and pay the tax. The gaming association wants the Trump Administration to change that policy. That is why the AGA has urged the US Department of Treasury to review and update the old policy that requires casinos to issue tax forms for slot machine jackpots of more than $1,199. The policy in question has been in force for more than four decades.
AGA has called on the US Department of Treasury to bring the tax threshold for slots on par with the current rate of inflation. More precisely, the association wants the Trump Administration to increase the threshold to $5,000 or greater. According to the association, the low threshold causes administrative as well as operational issues. However, the association’s president and chief executive Bill Miller said that the proposed revision in the tax threshold would have more than financial benefits in a post-corona pandemic world.
In a letter to the Department of Treasury, the AGA wrote, “When a player hits the jackpot on a slot machines above the $1,200 threshold, the machine locks up and stops play. Staff must issue a W-2G form to the player and validate its accuracy. Raising the threshold would reduce the paperwork burden on businesses and player while ensuring the tax code reflects current economic realities.”
The call to review and update the tax threshold for slots is the latest policy change that is being sought by the gaming industry. In March, Congress passed the $2 trillion CARES Act and the Paycheck Protection Program. It was available for casinos as well. But, the Small Business Administration’s objection made the administration to exclude casinos from the program, forcing Nevada-based Lakeside Inn to close its doors permanently. However, the Congressional Gaming Caucus’s co-chair Titus’s efforts made casinos entitled for consideration. The SBA then revised its guidelines, allowing casinos like Full House Resorts to receive millions of dollars in loans to support employees and revive its business.