Starting in 2026, casinos will implement a new reporting threshold of $2,000 for slot jackpots, following a confirmation from the Internal Revenue Service (IRS) regarding updates to federal information-reporting requirements.
The IRS has stated that the updated threshold will take effect for slot jackpots disbursed on or after January 1, 2026. This announcement came shortly after the agency unveiled a draft of the Form W-2G, which includes modifications as per the One Big Beautiful Bill Act.
An IRS representative told the Las Vegas Review-Journal that the draft form implements “the updated information reporting thresholds established by Congress under section 70433 of the One Big Beautiful Bill Act”, confirming the effective date for these changes.
This One Big Beautiful Bill Act was enacted by Congress and became law in July. It modifies federal information-reporting standards for specific payments, which includes winnings from casino gambling, by adjusting provisions in the Internal Revenue Code Sections 6041 and 6041A.
Under the current regulations, casinos must issue Form W-2G to any slot players who win $1,200 or more. This reporting threshold has not changed since 1977.
The new threshold of $2,000 is anticipated to decrease the number of slot jackpots that require mandatory reporting. This adjustment pertains solely to information-reporting requirements and does not alter how gambling winnings are taxed.
Previously, industry organizations and lawmakers have indicated that the $1,200 threshold no longer reflects contemporary gaming operations or inflation-adjusted values. Gaming advocates believe that this new threshold will reshape reporting activity on casino floors, particularly on modern machines where jackpots exceeding $1,200 are increasingly frequent.
The amended regulations will not affect jackpots distributed prior to January 1, 2026. Slot winnings paid in 2025 will continue to adhere to the existing $1,200 reporting standard.
The IRS has indicated that more regulatory guidance is forthcoming. The agency’s Priority Guidance Plan for 2025–2026 includes a project aimed at drafting rules to enforce the revised reporting thresholds under Sections 6041 and 6041A.
An IRS representative mentioned that further updates will be provided once the regulations are finalized.