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The IRS has published updated guidance confirming that the casino slot tax reporting threshold has almost doubled for 2026.
As first reported in July, the One Big Beautiful Bill Act (OBBBA) included a measure to increase the minimum amount that needs to be reported as a jackpot win on a slot machine in a land-based casino for the first time in nearly half a century.
“For calendar years after 2025, the minimum threshold amount for reporting certain payments and backup withholding on certain information returns, including the Form W-2G, will be adjusted yearly for inflation,” stated the IRS in a “What’s New” section of its guidance for filing W-2G forms. “The minimum threshold amount for payments made in calendar year 2026 is $2,000.”
The new amount of $2,000, effective on Jan. 1, will be increased in line with inflation each year beyond 2026.
Now, state regulators will need to update regulations to recognize the new numbers, which is a process that could slow down implementation at casinos, which might not all be in alignment with the IRS update by Jan. 1.
Even though the threshold for triggering a W2-G is going up, all slot winnings are still taxable, so there should be no adjustments on W2-Gs triggered at the lower rate.
The IRS has published updated guidance confirming that the casino slot tax reporting threshold has almost doubled for 2026.
As first reported in July, the One Big Beautiful Bill Act (OBBBA) included a measure to increase the minimum amount that needs to be reported as a jackpot win on a slot machine in a land-based casino for the first time in nearly half a century.
“For calendar years after 2025, the minimum threshold amount for reporting certain payments and backup withholding on certain information returns, including the Form W-2G, will be adjusted yearly for inflation,” stated the IRS in a “What’s New” section of its guidance for filing W-2G forms. “The minimum threshold amount for payments made in calendar year 2026 is $2,000.”
The new amount of $2,000, effective on Jan. 1, will be increased in line with inflation each year beyond 2026.
Casinos and states stilll need to adjust
It has taken months for the IRS to confirm the change, meaning casinos have been left in limbo until now.Now, state regulators will need to update regulations to recognize the new numbers, which is a process that could slow down implementation at casinos, which might not all be in alignment with the IRS update by Jan. 1.
Even though the threshold for triggering a W2-G is going up, all slot winnings are still taxable, so there should be no adjustments on W2-Gs triggered at the lower rate.
