Titus, LaHood Ask Treasury to Update Jackpot Reporting Threshold

May 13, 2019

The Honorable David Kautter
Assistant Secretary, Tax Policy
U.S. Department of the Treasury
3120 Main Treasury Building
1500 Pennsylvania Avenue, NW
Washington, DC 20220

Dear Assistant Secretary Kautter,

We write today to respectfully request that the Treasury Department use its authority to increase the threshold for reporting slot and bingo winnings. The current threshold for bingo and slot was set at $1200 in 1977 through regulation and has not been updated since then. As the value of a $1200 jackpot has decreased due to inflation, the number of jackpots hitting that threshold and requiring reporting has increased. This causes excessive burden to the gaming industry, a main economic driver in our districts.

When a player hits the jackpot on a slot machine above the $1200 threshold, the machine locks up and stops play. Staff must issue a W-2G form to the player and validate its accuracy. Raising the threshold would reduce the paperwork burden on businesses and players while ensuring the tax code reflects current economic realities.

If indexed to inflation, the current threshold would be around $5000. We respectfully request a response by June 10, 2019, indicating whether you intend to use your regulatory authority to raise the reporting threshold. If not, we look forward to working with you to draft legislation to make this change in the United States Code.

Thank you for your consideration and attention to this issue.

Sincerely,

Dina Titus
Member of Congress

Darin LaHood
Member of Congress