If legislators heed Rep. Dina Titus’s request, an outdated and unworkable rule regarding the threshold for disclosing slot machine earnings may finally be amended in Nevada.
Archaic Reporting Threshold
Titus, who attempted to advance a bill to increase the reporting threshold last year but failed due to lack of support, is now determined to succeed this time and relieve casinos of a significant amount of paperwork while also easing the frustration of customers who must wait while their winnings are processed.
“There was a point when we were attempting to persuade the Treasury Department to accomplish this through regulation, but they never moved, so we’re just going to push the legislation instead,” Titus stated as quoted by the Review-Journal.
A jackpot victory above $1,200 is required to be reported by the operator, whether they be a casino, bar, restaurant, convenience shop, or even airport staff, via the submission of a W-2G form to the Internal Revenue Service, according to the existing policy, which was put into place back in 1977. (IRS).
Titus, who serves as co-chair of the Congressional Gaming Caucus, is of the opinion that this “archaic” barrier needs to be modified to account for the significant changes in the environment over the past 46 years since it was initially put in place and to lessen the administrative burden on operators.
She appeals for bipartisan support for her idea, which would increase the reporting level to $5,000 and adjust it to annual inflation. She thinks states with some type of commercial or tribal gambling may support the concept. Additionally, she is adamant about making it a cause in the caucus since it will benefit everyone, not just Las Vegas (her legislative district includes the Strip).
‘Drain on the Consumer’
The current practice calls for the machine to be turned off once the attendants have checked it and confirmed the winner’s identity after a player wins the jackpot on a slot machine. Yet, there are certain locations where it could take some time for the procedure to start because casino staff or other staff members are preoccupied with other duties, leaving customers waiting, sometimes for hours.
The process “takes a little pressure off the tires and it certainly is a compliance burden” for operators, according to Alex Costello, vice president of government relations for the American Gaming Association (AGA).
More than 15 million W-2G forms were submitted to the IRS in 2020, according to the most recent data available, and as the industry begins to recover from the epidemic lows, more jackpots are likely to be won going forward.
According to Titus, if the plan is given enough attention by most members of Congress, it should pass the House. After that, she anticipates Nevada senators to take the initiative and obtain Senate ratification.
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