Jackpot Winners Get A Break With New IRS Rules
Jackpot winners rejoice! You may or may not have been aware of some new proposals that may have put a crimp in your slot playing and in casino’s bottom line. But, thanks to the efforts of casino lobbying forces, you, and the casinos, have been spared, at least for now.
The proposed regulations would have required slot jackpot winners to be given a 1099 when they won a minimum of $600 instead of the previous threshold of $1200. This would have added great costs to the casinos as well, greatly increasing paperwork and shutting down machines while payouts were verified, paid, and 1099s issued.
Also, there was a proposal to require casinos to report gambler’s activities, winnings and losses, by taking data from their loyalty cards. This would have added more expense to casino ledgers and possibly frightened people away from joining their loyalty programs. Who wants the IRS watching all their gambling activities?
The Las Vegas Sun wrote on this development:
When they were first drawn up, the rules suggested that casinos use information captured by player loyalty card programs to report slot wins and losses to the IRS.
In testimony the AGA submitted to the IRS, the lobbying group pointed out that loyalty card programs were not designed for that purpose and altering them to meet IRS standards for tracking and reporting income would be too costly for gaming companies.
In addition, the AGA said players would likely resent having this information sent to the IRS and as a result, would hesitate to sign up for the loyalty programs.
And in conclusion: Both the loyalty card proposal and the lowered reporting threshold ideas were dropped from the new rules. The AGA was also happy with changes the IRS made to sections of proposed rules that spelled out how players themselves had to report winnings.
Read more here.
The news is good. Jackpot winners and casinos will not incur the previously proposed regulations.