The AGA is in favour of the Congressional efforts that aim to modernise an outdated reporting process.
US.- The American Gaming Association (AGA) released a statement on Monday in which is commends Reps. Dina Titus and Darin LaHood for asking the U.S. Treasury Department to raise the threshold for reporting slot tax winnings from US$1,2k to US$5k. AGA is in favour of modernising an outdated reporting process.
Federal regulations establish that when a casino patron wins a slot machine jackpot of US$1.2k or more, the machine is temporarily taken out of production while the patron is required to complete a W-2G tax reporting form.
Despite the fact that slot jackpots steadily increased with inflation over the past decades, the US$1.2k threshold was established in 1977. If updated, a US$1.2k jackpot in 1977 would be equivalent to more than US$5k today if adjusted for inflation.
“Because the threshold hasn’t tracked with inflation, there has been a significant increase in the number of reportable jackpots. This caused more operational inefficiencies and added to the sea of W-2G forms currently flooding an underbudgeted and understaffed IRS each year,” explained AGA.
The letter to the U.S. Treasury Department says: “We respectfully request a response by June 10, 2019, indicating whether you intend to use your regulatory authority to raise the reporting threshold. If not, we look forward to working with you to make this change in the United States Code.”
Bill Miller, president and chief executive officer of the American Gaming Association, said: “Casinos are the only businesses that must take their assets out of production to comply with their tax information reporting obligations. The current federal regulations on reporting slot machine winnings [are] outdated, creating inefficiencies, paperwork and unnecessary hurdles. The gaming industry strongly supports the efforts of Reps. Titus and LaHood to update the antiquated threshold for reporting slot machine winnings while relieving associated burdens for casinos, their patrons and the IRS alike.”
AGA, recognised for its communication campaign
Last year, the association worked aggressively to educate policymakers, sports stakeholders and the public about the failures of the Professional and Amateur Sports Protection Act of 1992 (PASPA), and make the case for legal, regulated sports betting in the United States. The association saw one of the results of this campaign as the Supreme Court revoked the Act that prevented states from offering the gambling modality and mentioned AGA in its May 2018 ruling.