The IRS has now revealed up to date affirmation that the on line casino slot jackpot tax is to be virtually doubled in 2026.
An X publish by Very important Vegas acknowledged: “Sources say the IRS will formally affirm the reporting threshold for slot jackpots will increase from $1,200 to $2,000 beginning Jan 1. Now, mad sprint for casinos to implement the change.”
The One Massive Lovely Invoice Act (OBBBA), which was reported in July this yr, acknowledged {that a} measure to extend the minimal quantity that needs to be reported on a jackpot win on a slot machine was set to be launched.
Now, an quantity of $2,000 (£1,500) will come into impact on January 1, 2026, and that is set to extend yearly in keeping with inflation.
Casinos at the moment are dashing to implement the change
The earlier threshold of $1,200 (£900) has been in place in casinos since 1977, marking the primary vital change in practically 50 years.
Up till the 1st of January 2026, casinos have been required at hand pay slot wins for prizes of $1,200 or extra by the federal tax code. As such, the participant is issued a W-2G tax type to report any playing winnings, and that is then filed with the IRS.
For calendar years after 2025, the minimal threshold quantity for reporting sure funds and backup withholding on sure info returns, together with the Kind W-2G, can be adjusted yearly for inflation. The minimal threshold quantity for funds made in calendar yr 2026 is $2,000,” mentioned the IRS in a doc relating to the change firstly of 2026.
This improve has taken months to formally be confirmed, leaving hundreds of casinos required to replace laws for the brand new $2,000 threshold.
That would take time, that means casinos might not be in alignment with the January 1 date for the IRS replace on this threshold.
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