IRS Confirms Changes to Gaming Winnings Tax

The US Internal Revenue Service has published an update detailing changes to the federal reporting threshold for casino winnings. This marks the first change to this threshold in over half a century.

Casinos to File a Form for Winnings of $2K or More

The current framework was last changed in 1977, requiring casinos to submit a Form W-2G whenever a player wins $1,200 or more from a slot machine. However, critics have long complained about this figure due to inflation and overall economic shifts.

Now, the IRS has finally heeded calls for changing the reporting rules. Per the changes, the IRS has raised the limit for filing Form W-2G to $2,000 instead. These changes, which were previously only floated around, have now been confirmed and will come into force at the beginning of 2026.

Additionally, the IRS confirmed that it might not be long before the next change – according to the service, from now on, the threshold will be adjusted every year to account for inflation and other economic changes.

Trump Considers Further Changes

What the current changes mean for players is that casino goers can expect fewer and less frequent interruptions during their playtime. The change is likewise beneficial to casinos as it means a decrease in the regulatory hassle, as well as clearer reporting guidelines.

This aligns with the push for modernization of America’s tax regime in areas that have lagged behind and still boast outdated rules.

However, even more drastic changes might occur, if President Donald Trump’s recent claim that he plans to end federal taxes on gambling winnings is truthful. The US leader noted that he is eyeing granting tax exemptions not only to gambling wins but also to tips, overtime pay, and social security benefits.

As of the time of this writing, however, no official proposal has been submitted.