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The IRS has finalized changes that took effect January 1, 2026. The W-2G reporting threshold for slot machine winnings is now $2,000, up from $1,200. This change, part of the One Big Beautiful Bill Act, will help reduce interruptions for players and ease paperwork for casinos.
Key Points
- effective January 1, 2026
- new threshold: $2,000 for slot machine winnings
- indexed for inflation starting in 2027
- updated Form W-2G and draft instructions are now available
Timing: Reporting at $2,000 has been allowed since January 1. The IRS published the final form on January 7, 2026, so casinos should now use the updated form for all reporting. While still in draft, the instructions confirm that the new $2,000 threshold applies to W-2G.
What It Means for Casinos: The higher threshold means fewer interruptions for players and less administrative work overall. Adjusting to the new threshold may involve some effort behind the scenes, especially with annual inflation adjustments coming in 2027.
Looking Ahead: There is ongoing discussion about whether the threshold should be raised further, both in the U.S. Congress and through administrative channels. Holland & Knight is engaged in these conversations and will share updates as developments occur.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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