Slot jackpot reporting threshold rises to $2,000 starting in 2026 under federal law

Casinos will begin applying a higher $2,000 reporting threshold for slot jackpots starting in 2026 after the Internal Revenue Service confirmed the effective date tied to changes in federal information-reporting requirements.

IRS said the revised threshold will apply to slot jackpots paid on or after January 1, 2026. The confirmation followed the agency’s release this week of a draft Form W-2G that incorporates statutory revisions enacted under the One Big Beautiful Bill Act.

In an email response to the Las Vegas Review-Journal, an IRS media spokesperson said the draft form reflects “the new information reporting thresholds implemented by Congress in section 70433 of the One Big Beautiful Bill Act” and confirmed when the change will take effect.

The One Big Beautiful Bill Act was passed by Congress and signed into law in July. The legislation amended federal information-reporting requirements for certain payments, including casino gambling winnings, by revising provisions under Internal Revenue Code Sections 6041 and 6041A.

Under existing law, casinos are required to issue a Form W-2G to slot players who win $1,200 or more. That reporting threshold has remained unchanged since 1977.

The revised $2,000 threshold is expected to reduce the number of slot jackpots that require mandatory reporting. The adjustment applies to information-reporting obligations and does not change the tax treatment of gambling winnings.

Industry groups and lawmakers have previously stated that the $1,200 threshold no longer aligns with current gaming operations or inflation-adjusted values. Gaming advocates have said the updated threshold would modify reporting activity on casino floors, particularly on modern machines where jackpots exceeding $1,200 are common.

The statutory revision will not apply to jackpots paid before January 1, 2026. Slot winnings paid in 2025 will continue to follow the existing $1,200 reporting requirement.

The IRS indicated that further regulatory direction is in development. The agency’s 2025–2026 Priority Guidance Plan includes a project to draft regulations implementing the revised reporting thresholds under Sections 6041 and 6041A.

An IRS spokesperson said additional updates will be issued once the regulations are finalized.