The IRS has confirmed that the threshold for US gamblers to report their slot machine winnings will increase to $2,000 from the current $1,200 level starting January 1, 2026. Gamblers were confused by the new framework when President Trump’s One Big Beautiful Bill (OBBB) passed in July, as the IRS hadn’t given any guidance on the matter until now.
account for the increasing bet sizes and inflation during the intervening years
The requirement for gamblers to complete a Form W-2G whenever they win at least $1,200 on a slot machine has been in place since 1977. Lawmakers felt that increasing it to $2,000 would better account for the increasing bet sizes and inflation during the intervening years.
The threshold will also be open to change depending on inflation levels during a given year. Gamblers welcome the new threshold as it means less documentation when they win amounts between $1,200 and $1,999.
Another controversial aspect of the OBBB was reducing the gambling loss deductions from 100% to 90%. This means that some individuals who break even or incur a loss during the year may still be liable for paying taxes on their winnings. Attempts by lawmakers to overturn this change have been unsuccessful so far.
