HR2233-119

What This Bill Does

The SLOT Act changes tax information reporting for slot-machine winnings. It adds a special Internal Revenue Code section 6041 rule saying no return is required for winnings from one slot machine play unless the winnings are at least $5,000, measured without reducing the winnings by the wager amount. For calendar years beginning after 2026, the $5,000 threshold is indexed for inflation using the section 1(f)(3) cost-of-living adjustment with 2025 substituted as the base year. The change applies to payments made after December 31, 2025. The practical effect is fewer IRS information returns for lower slot jackpots and less tax paperwork at casinos for wins below the new threshold.

Who Benefits and How

Slot machine winners benefit because wins below $5,000 from one play would no longer trigger section 6041 information reporting. Casino operators benefit from fewer reportable slot payouts and less W-2G-style paperwork for smaller jackpots. Gaming floor staff benefit from fewer interruptions to collect tax reporting information for lower slot winnings. Casino tax compliance staff benefit from an inflation-indexed threshold instead of a static lower reporting amount.

Who Bears the Burden and How

IRS reporting administrators must update section 6041 guidance and forms for the new threshold. Federal tax enforcement staff may receive fewer information returns for slot winnings below $5,000. Federal revenue may be affected if reduced reporting lowers voluntary compliance on smaller slot wins. Casinos must still track and report slot-machine payments meeting or exceeding the new threshold.

Key Provisions

• Raises the reporting threshold for winnings from one slot machine play to $5,000.
• Requires the threshold to be measured without reduction for the amount wagered.
• Provides inflation indexing for calendar years beginning after 2026.
• Applies the new threshold to payments made after December 31, 2025.