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The AGA states that 2021 promises a higher slot reporting threshold

As the casino industry grows nationwide and the number of slot jackpots increases, the problem with the slot reporting threshold is increasing.

The IRS threshold issue was raised at the first G2E Insider Live webinar

The low threshold issue The IRS was commented at the first G2E Insider Live webinar "Post-Election Landscape and Implications for Games" on Thursday, which led by Chris Cylke, AGA Senior Vice President for Government Relations.

They took part in the event Aurene Martin, President of Spirit Rock Consulting of Alexandria, Virginia, Eric Zulkosky with Fierce Government Relations, an entirely Republican lobbying company, Todd Webster, director of Cornerstone, a Washington-based government relations firm. and Phil Cox, founder of 50 State, a two-party Washington-based consulting firm.

The AGA proposes to raise the threshold to $ 5,000

Currently, if a casino player wins a jackpot of 1,200 $ or more, the slot machine must be closed, the casino must issue IRS Form W-2G and report the amount to the Tax Office. While the player and the casino are filling out paperwork for the IRS, the slot machine remains closed. This threshold has not been changed since 1977 and, according to the American Gaming Association (AGA), it causes financial losses in casinos as well as diminishes the positive experience of players.

During a live webinar, the AGA suggested raising the threshold to $ 5,000. According to the statement Bill Miller, President and CEO of AGA, this figure is the current equivalent of $ 1,200 when the threshold was reached in 1977. He also said that due to inflation, the threshold is obsolete and has become a burden on both casinos and the IRS itself.

At the webinar, Zulkosky, Cylke and Webster stated that there was a "Chamber-approved ruling" that could force the Treasury Department to check the threshold and attend congress within a fixed 90-day period. Zulkosky also assumed it would be part of mandatory legislation. However, it is up to the Treasury Department and the IRS to decide whether or not the threshold is raised.

According to Cylke, the chances are good because their support is growing and the expansion of legal games in the country is taking place. He also said the prospect of raising the threshold looked better.

Reform of the threshold has been expected for a long time

Back in May, during the Trump administration reforms, the AGA again raised the issue with the IRS threshold in the hope that it will bring a change to the gaming industry. The administration issued an order to allow the AGA to make another attempt to initiate reform on the outdated threshold.

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