A long-awaited update to tax reporting for slot jackpots included in the One Big Beautiful Bill Act will go into effect in 2026, the Internal Revenue Service confirmed this week.
The updated minimum threshold of $2,000 for slot jackpots begins on January 1, according to the federal agency.
The confirmation follows Monday’s release of a draft IRS Form W-2G, reflecting changes mandated by the OBBBA, which was passed by Congress and signed into law in July. The law changed federal information reporting requirements for certain payments, including casino winnings.
In an email response to the Review-Journal, an IRS media spokesperson said the draft form reflects “the new information reporting thresholds implemented by Congress in section 70433 of the One Big Beautiful Bill Act” and confirmed the enactment.
Under current law, casinos must issue a Form W-2G to slot players who win $1,200 or more, a threshold that hasn’t changed since 1977. Congress addressed the issue earlier this year by raising the threshold for information reporting under Internal Revenue Code sections 6041 and 6041A.
Industry groups and lawmakers have long argued that the amount no longer reflects modern gambling or inflation. Gaming industry advocates have said raising the threshold would modernize the reporting system and reduce operational friction on casino floors.
Once in effect, the change is expected to reduce the number of mid-level slot jackpots that trigger mandatory reporting, particularly on modern machines where wins over $1,200 are common.
The law change does not apply retroactively and will not affect jackpots paid out in 2025.
The IRS signaled that additional guidance is forthcoming. The agency’s 2025-2026 Priorities Plan includes a project to draft rules implementing the higher reporting thresholds under sections 6041 and 6041A, indicating that formal rules are still being developed.
An IRS spokesperson said additional updates will be issued as the rules are finalized.
Contact David Danzis at ddanzis@ theplayerlounge.com or 702-383-0378. Follow @AC2Vegas_Danzis on X.
