• The SLOT Act (Shifting Limits on Thresholds Act), reintroduced in March 2025 as H.R. 2233 by Representatives Dina Titus (D-NV) and Guy Reschenthaler (R-PA), aims to raise the required reporting threshold for slot machine winnings.
• Since 1977, casinos have been required to issue a W-2G tax form for slot payouts over $1,200, triggering a pause on the machine every time someone wins above that.
• The new bill proposes increasing this threshold to $5,000, and — crucially — indexing it to inflation in the future, so it doesn’t get outdated again.
Recent Progress — But Not the Full Change Yet.
• Earlier in 2025, a big piece of legislation — dubbed the “One Big Beautiful Bill Act” (OBBBA) — passed, which partially addressed SLOT Act goals. Under OBBBA, the threshold was raised from $1,200 → $2,000.
• Importantly, starting in 2026, this threshold will be tied to inflation, meaning that as costs go up, the reporting threshold will adjust accordingly.
• Even though the SLOT Act (H.R. 2233) remains pending in the House Ways and Means Committee, many in the gambling industry see the OBBBA’s changes as a significant step forward.
Why the Gambling Industry Is So Invested?
• Less Paperwork, Faster Play: Raising the reporting threshold means fewer W-2G forms, which translates into less downtime on slot machines after big wins — a better experience for players and fewer operational headaches for casinos.
• Regulatory Relief: The American Gaming Association (AGA) praised the changes. The AGA says the higher threshold and inflation indexing reduce unnecessary regulatory burdens for both operators and the IRS.
• Modernizing Outdated Rules: According to experts, the $1,200 threshold hasn’t kept up with economic realities. Inflation over decades has eroded its real value, and updating it helps align regulation with today’s gaming and financial landscape.
• Preventing Illegal Gambling: Some industry watchers argue that too-strict or outdated reporting rules could push players toward illegal or unregulated gambling.
Roadblocks & Uncertainties
• Legislative Delay: Even though the SLOT Act has been reintroduced, there’s no guarantee when — or if — it will pass in its full form (i.e., up to $5,000).
• Competing Policy Priorities: Lawmakers are juggling many gambling-related issues, including broader regulation on sports betting, iGaming, and problem gambling.
• Regulator Pressure: Some experts warn that increasing thresholds without concurrent player protection could raise abuse risks, especially as gambling becomes more digital and accessible.
The SLOT Act Update Could Change Everything — Here’s What You Need to Know
A message for every player, casino operator, and gambling enthusiast watching the U.S. industry right now.
The U.S. gambling world is holding its breath — and for a good reason. The long-awaited SLOT Act update is right around the corner, and if the current proposal moves forward, it could reshape how casino winnings are reported, taxed, and handled across America.
Let’s break down what this means for you, in the simplest and most direct way.
Why Is Everyone Talking About the SLOT Act? Because the act could finally raise the outdated $1,200 reporting threshold for slot machine winnings — a number that hasn’t changed since the 1970s.
Imagine hitting a mid-tier jackpot…
Suddenly the machine stops.
Staff walks over.
Paperwork starts.
Your excitement drops.
That’s the issue U.S. players have complained about for decades.
The new SLOT Act proposal aims to push that threshold up to $5,000, meaning fewer interruptions, less bureaucracy, and more seamless gameplay.
And yes — players and casinos love the idea.