Reschenthaler’s bipartisan bill to fix outdated slot winnings tax threshold

U.S. Rep. Guy Reschenthaler (R-PA) last week introduced legislation that would help the gaming industry and its players by raising the tax threshold for slot machine winnings, which has not been updated in 45 years.

On May 5, Rep. Reschenthaler introduced the bipartisan Shifting Limits on Thresholds (SLOT) Act, H.R. 3125, with bill sponsor U.S. Rep. Dina Titus (D-NV). Both serve as co-chairs of the Congressional Gaming Caucus.

According to the congressman’s office, the IRS set the tax reporting threshold for a jackpot win at a casino at $1,200 back in 1977. The SLOT Act would increase the tax reporting threshold for slot jackpots to $5,000 and provide a mechanism for future increases based on inflation.

“Because the threshold has not kept up with inflation, it has resulted in a drastic increase in reportable jackpots, which trigger tax burdens for winners and compliance burdens for casinos,” Rep. Reschenthaler said. “Increasing the threshold will eliminate this onerous red tape, ensuring the gaming industry can continue to support good-paying jobs and foster economic growth in southwestern Pennsylvania and across the country.”

Pennsylvania’s gross gaming revenue totaled $4.8 billion in 2021, the congressman’s office said, ranking it second in the nation after Nevada.

“This is a commonsense update to tax policy that creates a better patron experience, reduces burden on the IRS, and supports gaming’s economic impact in communities,” said American Gaming Association President and CEO Bill Miller. “We are grateful for Rep. Titus and Rep. Reschenthaler’s leadership on this important industry priority to address the antiquated slot tax threshold.”