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US tax news: Tax increase to go into effect on reported slot machine jackpots
Updated guidance by the IRS confirmed that the casino slot tax reporting threshold will nearly double in 2026.
For the first time in nearly 50 years, the minimum amount to report as a jackpot win on slot machines will increase in 2026, the IRS confirmed in its guidance for filing W-2G forms. As part of the One Big Beautiful Bill Act, and as stated by the IRS in a "What's New" section of its guidance, the minimum threshold for jackpot wins on slots at land-based casinos increased to $2,000 starting Jan. 1 and will continue to rise in line with yearly inflation.
Casinos now need to make quick adjustment to tax increase
With the IRS' updated guidance, state regulators now have to update their own regulations to reflect the tax increase. In theory, they have not been able to act on the change as the IRS had yet to confirm it.