In a major win for the gaming industry today, the Treasury Department published regulations that do not reduce winning thresholds for a casino’s tax information reporting obligations, and will not track electronic player cards for tax information purposes.
Under current rules, a casino must file information returns on winnings of $1,200 or more on a single slot pay or bingo game, and $1,500 for one keno game. Even though these thresholds were set nearly 40 years ago in 1977, in March 2015, while working on proposed regulations for the gaming industry, the Treasury Department suggested that these thresholds should be lowered to $600 in winnings. This proposal was met with heavy opposition from the industry, who countered that requiring a game to be stopped for the player’s information to be taken down for a $600+ win would result in a major burden to the industry.
The Treasury Department has taken these comments to heart, and did not reduce these reporting thresholds in the final regulations that were published. Here, it paid to let the Treasury Department know how an industry felt about how a proposed rule change will impact them.
In addition, the new regulations will not use electronic player cards issued by casinos to track a player’s winnings and losses for tax purposes, which is another win for the industry as well as players’ privacy.