You May Not Need to Pay Taxes on Casino Jackpots

As the days go on, more casinos around the United States are beginning to open back up. The American Gaming Association is now working to change the requirements set on gamblers to pay taxes on casino jackpots. If all goes according to plan, US casinos will only report jackpot winnings above $5,000.

Picture Of The Word Tax

Many feel this is long overdue. Since 1977, any casino winnings over $1,200 have needed to be reported as taxable income. 2020 might be the year that this changes.

Let’s take a look at what the AGA has planned.

The US Casino Industry is Coming Back to Life

Prior to March, the land-based casino industry in the United States was thriving. Over the past two months, however, this industry has been struggling to stay alive. Fortunately, things may be starting to rebound.

Every single state is now beginning to lift its restrictions. Some have officially begun allowing their casinos to reopen. That includes Louisiana, where some of the biggest casino-resorts in the state will soon reopen to the public.

In some parts of the country, casinos are opening up without the blessing of state leaders. In California, for example, many Native American-run casinos have already opened their doors. These venues sit on sovereign land and do not need to abide by state regulations.

Some states are taking their time allowing casinos to open up again. Nevada is not allowing this to happen until specific safety measures are set in place. Based on what’s being said, the majority casino-resorts in Las Vegas will begin opening back up in June.

For many casino companies, reopening gaming venues is a complete necessity. Some may not last very long unless their casinos start operating again. It’s still not entirely clear how much revenue the US casino industry will manage to generate over the next few months.

Now, one of the most powerful gambling groups in the country is asking the government to make a major change.

Gamblers May No Longer Need to Pay Taxes on Casino Jackpots Below $5,000

As most casino gamblers already know, anyone with jackpot winnings above $1,200 needs to be given a W-2G tax form. These winnings are considered taxable income. For many years, the American Gaming Association has called for the Treasury Department to change this so that only winnings above $5,000 are taxed.

Officials within this group claim that, when adjusted for inflation, $1,200 back in 1977 amounts to about $5,000 today. They also believe that requiring such a small amount of money to be taxed causes unnecessary burdens on the IRS. Bill Miller, President and CEO of the AGA, spoke about this situation to the media this week.

“As the gaming industry safely reopens and seeks to return to financial health, one critical area of regulatory reform the administration should consider is modernizing the $1,200 slot jackpot reporting threshold, which has been in place since 1977,” Miller said. “The current threshold is outdated and imposes significant compliance burdens on both the Internal Revenue Service and the gaming industry.” 

This change is apparently being supported by many members of Congress. The Trump Administration, currently looking at new ways to save the Federal Government money, also seems to support this idea. It may end up helping the casino industry more than we realize.

The AGA has asked for a change to the way people pay taxes on casino jackpots for years. Now, it appears this decision will be approved. We’ll give an update on what casino companies feel about these proposed regulations over the next few weeks.

Las Vegas Casinos Prepare to Open in June

All parts of the US have been affected by the spread of the new coronavirus. From an economic standpoint, Las Vegas is one of the worst-hit areas. This city has been essentially shut down for months and hundreds of thousands of residents have been left without work.

Las Vegas relies heavily on its tourism and gambling industries. Unfortunately, both have been shut down since March. All of the casinos here are closed and tourism is at an all-time low.

Everyone recognizes that something needs to change. Nevada is set to enter into Phase 2 of reopening soon and the current plan is for casinos in the state to begin reopening in June. That includes venues such as The Venetian and The Bellagio.

Some travel experts believe now may be the perfect time to visit Las Vegas. That may be even more true if gamblers aren’t required to pay taxes on casino jackpots below $5,000. No one knows how things will turn out over the summer, yet casino companies are doing everything they can to attract more visitors to Las Vegas.

Do you think the AGA’s new plan makes sense? Are you planning to visit Las Vegas anytime soon? Let us know in the comments section below!

Here’s How Casinos Will Look After Restrictions Are Lifted

It’s been nearly two months since most casinos around the US began to close. Unfortunately, all of the country’s gambling venues remain shut down. This week, several experts began discussing how casinos will look after the current restrictions set in place are lifted.Slot Machines Inside Casino

Different states are beginning to open up. Unfortunately, it’s still unclear when land-based casinos will be able to open up again. Now is the perfect time to discuss what steps casino owners are likely to take once things begin getting back to normal.

US Casino Companies Continue to Lose Revenue

The past few weeks have been some of the hardest in the history of the US casino industry. Never before have all the country’s gambling venues been forced to shut down. To make things worse, no one can really say when these casinos will be able to open their doors again.

It’s no surprise that this is costing many companies a huge amount of money every single month. This is especially true for the ones operating large casino-resorts. Companies in Las Vegas, for example, are losing millions of dollars every day.

Even smaller casino markets are still hurting. Not long ago, a report surfaced that revealed how much money the casinos in Pennsylvania are losing. This report claims that revenue dropped from $304 million in February to just $154 million in March.

In April, the gambling revenue earned in this state was almost non-existent. All casinos remain closed here. Some fear that many of the casinos in Pennsylvania may be forced to shut down permanently.

Some parts of the country are beginning to lift their restrictions. Officials within the gambling industry are now shedding some light on how casinos will look once they open back up. Here’s what we can expect.

Experts Discuss How Casinos Will Look Once They Reopen

In early March, many different casinos around the country began shutting down. Since that time, infections have spiked in some areas and plateaued in others. Several states are now beginning to open back up.

The American Gaming Association has continued to ask when casinos will be able to open again. It’s a tough question, as casinos pose a serious risk for infection spread. Now, casino officials are talking about the steps they will take to protect their patrons.

Most agree that guests and employees will be required to wear masks. Many also feel that sanitizers will be placed around the casino floor. Jim Allen, president of the Hard Rock Hotel and Casino chain, spoke about this situation to the media this week.

“It’s important to focus on safety; it truly is,” Allen said. “But I sincerely feel there are those who do not have a clue as to the economic challenge this is creating. The ripple effect of the trillions of dollars in debt we’ve just put on the United States by printing money is something that we all need to be very focused on.”

There’s certainly some validity to this. The US casino industry employs a huge number of people. Closing the country’s casinos down has taken a serious toll on the economy.

No one really knows how casinos will look once they begin opening up. Most agree that they won’t be the same for quite some time. Recently, more and more individuals have begun calling for casinos in Las Vegas to open back up.

Las Vegas Casinos Begin Preparing to Open Up

At the start of this year, things were going incredibly well in Las Vegas. Tourism was increasing fast and gambling revenue was at an all-time high. As March approached, things began to change rapidly and now the city is essentially shut down.

For a city that relies on tourism, this has been devastating. As time goes on, more officials here have begun asking for things to reopen. Las Vegas Mayor Carolyn Goodman has called the Governor’s regulations “total insanity” and wants to see casinos operating again.

Governor Sisolak refuses to say when Las Vegas can return to normal. That isn’t stopping casinos from making preparations, though. Several of the biggest casinos in Las Vegas are beginning to announce the measures they’ll take after reopening.

This is shedding some light on how casinos will look in Las Vegas over the next few months. The Venetian, for example, has announced that it will utilize thermal cameras to scan for individuals with fevers. EMT’s will also be present to care for those suspected of having Covid-19.

If all goes according to plan, the Venetian will start accepting guests in June. This is an unprecedented time, though, and it’s very possible that this date will be pushed back.

Stay tuned for more Las Vegas casino news over the next few weeks!