Proposed IRS changes to Casino wins!

[Evoni]

I've put this message on Facebook so I'm sorry if you are reading it more then once.

Just a FYI for those of us in the USA in case it's of interest to you. IRS is trying to change the regulation that requires casinos to report wins of $1200.00 to $600. Not only is it bad for casinos, not great for gamblers. Here's what I received from the American Gaming Association:

http://us7.campaign-archive1.com/?u=03373c05c46b5e9a6eb445537&id=d3726ad6a0&e=63d132a5eb

[boots]

That would BLOW! Ugh. Though given the latest generation or two of penny slots, hitting more than $599.99 seems increasingly rare anyway. (Or is it just me?)

[camon]

Will this means the slot machines would lock up after $600 + single spin win, bonus spin win, or wheel spin win? and would more people having to use their win loss statement to keep taxes from being taken out? The only machine I would be concerned with winning over 600 most of the time is titan 360 and I do not want the machine to lock up each time I win over 600, which happens often. Those betting a dollar and hitting a high major like I do a lot or those betting 1.50 and hitting 200x3 on the prize upgrade for 600 or those max betting at 5 dollars a spin and hitting a mini jackpot over 600, which happens quite often on this machine at my local, especially on the free games.

[Cyndyga]

And for those of us who can't itemize it means paying taxes on losses Ugh!

[Evoni]

That would BLOW! Ugh. Though given the latest generation or two of penny slots, hitting more than $599.99 seems increasingly rare anyway. (Or is it just me?)

Derek, said the same thing in a comment when I posted this on FB, but honestly I see a lot of folks hitting around $600 or $700 when I'm staying at Venetian, Palazzo, Aria or Wynn. If they take it down to $600 on my last trip I would have had at least 5 hand pays and the annoyance of sitting there waiting for them to pay me and of course I don't mind tipping for over $1200.00 but just $600 I could live without tipping.

[camon]

What are the chances of these new changes going into effect Evoni? I hope it does not happen; however, I think there are pro's and cons to this. The con is having to be charged taxes and rely more on win lost statement at the end of the year to keep yourself from paying the taxes. The pro is slowing the gambler down to relax, wait for handpay, and then put a hundred or something in the machine and put the winnings away. A lot of people do get over 500 in a machine and instead of cashing out and put a 20 dollar bill or hundred dollar bill in, they keep playing and put it all back.

[dvandentop]

Derek, said the same thing in a comment when I posted this on FB, but honestly I see a lot of folks hitting around $600 or $700 when I'm staying at Venetian, Palazzo, Aria or Wynn. If they take it down to $600 on my last trip I would have had at least 5 hand pays and the annoyance of sitting there waiting for them to pay me and of course I don't mind tipping for over $1200.00 but just $600 I could live without tipping.

For penny version i think it is rare as hell any more especially with the "entertainment" style ones like the new crappy aristocrats
the new ballys and some of the new WMS junk too.

We all know the real paying games are becoming more and more rare it seems and casinos leaning towards stocking the lower payscale themes.

[inaminute]

Maybe another reason club cards are starting to require PINS. Never liked tracking cards from day one. I always thought there was more to them than rewarding your play, like hmmmm, penalizing your play. I think it may be coming where you can't play anywhere without a card inserted. Doesn't somewhere in the US already require a card to be used?

[slotbender]

I can see where this would benefit no one except government. They are now looking for every penny that they can get their grubby little paws on because they are broke and still spending OUR tax dollars like there's no tomorrow. No wonder that there have been record amounts of people that have been renouncing their citizenship to the U.S. and moving to another country.

[Evoni]

For penny version i think it is rare as hell any more especially with the "entertainment" style ones like the new crappy aristocrats
the new ballys and some of the new WMS junk too.

We all know the real paying games are becoming more and more rare it seems and casinos leaning towards stocking the lower payscale themes.

I did have at least a couple of those rare wins last month betting $3.00 on The Walking Dead and then $2 on the new Elton John slots. Both paid me over $700.00 on a spin, so personally I wouldn't like to see them go to requiring me to wait for a hand pay on anything above $600.00. :)

[inaminute]

I don't think you are going to have to wait as I believe it will all be computerized tracked. In the state where I live, every casino is requiring you to establish a PIN and in their mailers they are non-specific as to why.

[declansgigi]

What are the chances of these new changes going into effect Evoni? I hope it does not happen; however, I think there are pro's and cons to this. The con is having to be charged taxes and rely more on win lost statement at the end of the year to keep yourself from paying the taxes. The pro is slowing the gambler down to relax, wait for handpay, and then put a hundred or something in the machine and put the winnings away. A lot of people do get over 500 in a machine and instead of cashing out and put a 20 dollar bill or hundred dollar bill in, they keep playing and put it all back.
I think you a right. If I had a handpay at $600, I would likely put $ away instead of just having it on a TITO to justove to another machine. If its real $ I tend to tuck at least half away.

[Evoni]

What are the chances of these new changes going into effect Evoni? I hope it does not happen; however, I think there are pro's and cons to this. The con is having to be charged taxes and rely more on win lost statement at the end of the year to keep yourself from paying the taxes. The pro is slowing the gambler down to relax, wait for handpay, and then put a hundred or something in the machine and put the winnings away. A lot of people do get over 500 in a machine and instead of cashing out and put a 20 dollar bill or hundred dollar bill in, they keep playing and put it all back.

I'm hoping that the American Gaming Association successfully fights them off making this change, but I guess we'll have to wait and see. Honestly I feel they should make the reporting amount more given inflation and not less.

[slotbender]

I'm hoping that the American Gaming Association successfully fights them off making this change, but I guess we'll have to wait and see. Honestly I feel they should make the reporting amount more given inflation and not less.
You have a point about the inflation Diana. But the thing is, I've seen larger/more jackpots being hit (well over $1,200 w/$2 bet) on slots just a few years ago compared to what these newer slots are paying today. This is one of the reasons why they want to lower the threshold amount for a W2G requirement. All that it takes is to receive 1 W2G for the year and it makes you have to do a win/loss report on your gambling come tax time. Also, this would mean more record keeping, paper work, and expense for the gamblers as well as the casino's. The only one that benefits from this will be the tax collector (IRS).

[Evoni]

You have a point about the inflation Diana. But the thing is, I've seen larger/more jackpots being hit (well over $1,200 w/$2 bet) on slots just a few years ago compared to what these newer slots are paying today. This is one of the reasons why they want to lower the threshold amount for a W2G requirement. All that it takes is to receive 1 W2G for the year and it makes you have to do a win/loss report on your gambling come tax time. Also, this would mean more record keeping, paper work, and expense for the gamblers as well as the casino's. The only one that benefits from this will be the tax collector (IRS).

I understand that and agree that the only one that benefits is the tax collector. :)

[oldslotguy]

"only good for the gobment" .. Bound to create jobs. The casino will have to have twice as many attendants too. But personally .. BUMMER. Had 22 W2Gs last year. Now I'd have a 100. My tax lady charged 0 more for doing all those, where some places (H&R) charge $2 EACH.

[zeus]

"only good for the gobment" .. Bound to create jobs. The casino will have to have twice as many attendants too. But personally .. BUMMER. Had 22 W2Gs last year. Now I'd have a 100. My tax lady charged 0 more for doing all those, where some places (H&R) charge $2 EACH.
That is a good point. With the same amount of attendants there would be a lot of down time at the slots, and we know the casinos would not have that.

[oldslotguy]

That is a good point. With the same amount of attendants there would be a lot of down time at the slots, and we know the casinos would not have that.

Oh yeah, bunches of players standing around like back in the coin days.

Several states would love to see that lower figure, cause you have to pay tax on the gross amount on every HP. I know MI does not allow any subtraction for losses.:(

[Zooms]

On the machines I play, at least here in WA, $600 wins are common, especially at the $10 & $20 bet levels. If a HP with a W2G was required for each $600+ win! those players would spend a lot of time waiting. Or else they would just stake out 2 machines together, which would mean the $5 players wouldn't be able to get on a machine at all. Some of the $20 players already do that.