US gambling industry awaits the next SLOT Act update

For decades, casinos across the United States had to temporarily shut down slot machines right after patrons hit jackpots above $1,200. Under a regulatory requirement set nearly 50 years ago, casinos had to temporarily disable any slot machine that had paid out winnings of more than $1,200, while a W2-G tax form was issued to the winner by the casino.

Early in 2025, two lawmakers reintroduced a proposal that sought to raise the slot winning threshold, making it more suitable to the present moment and indexing it to inflation for the future. That was the prime purpose of the Shifting Limits on Thresholds (SLOT) Act, H.R.2233, reintroduced by Congresswoman Dina Titus and Congressman Guy Reschenthaler in March 2025.

The SLOT Act: what is it and why does it matter

The push in 2025 isn't the first time Reps. Titus and Reschenthaler called for an update on the slot reporting threshold. In 2023, the duo once again issued a SLOT Act update, supporting the overhaul of casino regulation with the increase of the reporting threshold for slot machines from $1,200 to $5,000. Reps. Titus and Reschenthaler, in fact, supported original co-sponsors of the legislation, which included Jack Bergman, Mike Kelly, Jeff Van Drew, Lou Correa, Mike Ezell, as well as Hank Johnson.

But what is the SLOT Act and when will the SLOT Act be voted on? The Shifting Limits on Thresholds Act, also known as the SLOT Act, plans to modernize an outdated tax reporting threshold applicable to slot machines. Introduced in 1977, the slot reporting threshold remained in place for decades, creating unnecessary compliance burdens for casinos and jackpot winners.

As noted, the SLOT Act sought to raise the tax reporting threshold for slots jackpots to $5,000 and establish a framework for future increases to ensure the threshold keeps up with inflation. In turn, the change is expected to benefit jackpot winners, ease the paperwork burden on casinos and decrease operational work for the Internal Revenue Service (IRS), which is reviewing W-2G forms.

When will the SLOT Act be voted on

In mid-March, Reps. Titus and Reschenthaler reintroduced the SLOT Act in the House and the proposal was subsequently referred to the House Committee on Ways and Means. Since then, H.R.2233 hasn't gone through voting and a vote date for the legislation has not been scheduled.

While the SLOT Act hasn't progressed since it was initially sent to the House Committee on Ways and Means, a change in the slot reporting threshold was introduced earlier this year as part of a larger US federal statute passed by the 119th Congress in the United States.

That is the case for the One Big Beautiful Bill Act (OBBBA), a lengthy tax and policies legislation signed into law by President Donald Trump on July 4, 2025. OBBBA represents a major part of Trump's second-term agenda and it includes a modernization of the gambling tax policies.

Notably, OBBBA addressed the outdated slot reporting threshold, increasing it from $1,200 to $2,000. That is the case for Section 70433 of OBBBA, which effectively improves casino regulation by increasing the sum required for issuing a W2-G tax form. Equally as important, starting from 2026 and beyond, the slot reporting threshold will be tied to inflation and will continue to increase.

This otherwise means that the inflation adjustment will ensure the jackpot threshold keeps up with the continuously changing gaming and business landscape. With that in mind, undoubtedly, the $2,000 slot threshold is a step in the right direction toward regulatory modernization.

Why is regulatory modernization and increasing the slot reporting threshold important?

Casino Guru's Head of Casino Research, Matej Novota, highlighted the significance of regulatory modernization, saying:

"Updating outdated regulations like the SLOT Act is a smart step toward keeping gaming fair, modern, and competitive within the legal market. Legislation that reflects today's economic realities protects the legal market and helps prevent players from drifting toward illegal alternatives."

Moreover, he explained: "True progress in the gaming industry comes from modern laws, constant review, and a willingness to innovate as technology and player behavior evolve. Simplifying compliance and reducing red tape is how we strengthen legal gaming — innovation and fair regulation must go hand in hand."

Finally, Novota said: "By adjusting outdated rules, Congress shows it understands that the success of the legal market depends on balance, modernization, and continuous reevaluation."

Stakeholders react to the overhaul of casino regulation

After the signing into law of OBBBA early in July, the American Gaming Association (AGA), the gambling industry association in the United States, representing commercial and tribal casino operators, released a statementpraising the efforts of lawmakers to advance "positive tax policies." Signed by AGA's President and CEO, Bill Miller, the letter highlighted the importance of the new slot reporting threshold.

"We are also celebrating the modernization of tax thresholds – something the industry has been trying to achieve for decades. The new reporting threshold of $2,000 for slot winnings will mean less compliance burdens for our patrons and operators, while also eliminating unnecessary paperwork for the IRS," Miller wrote at the time.

Chris Cylke, AGA's SVP of Government Relations, also spoke about the change in the slot tax reporting threshold. In an interview for SBC Americas in July, he said: "Raising the slot tax reporting threshold to $2,000 and indexing it to inflation is a long-overdue modernization that reduces regulatory burdens and improves the customer experience."

According to Cylke, the increase of the jackpot threshold represented a "hard-fought win" for the gambling industry. Finally, he said that the Association will continue to collaborate with lawmakers regarding the implementation of the changes.

Increasing the jackpot threshold removes unnecessary burdens

Gambling industry stakeholders, including casino operators, regulators and lawmakers, have carefully tracked and awaited the next SLOT Act update. Yet, considering the changes to casino legislation, introduced as part of OBBBA, the future of H.R.2233 remains unclear.

Still, the improved policies affecting slot machine win part of OBBBA are expected to make a big difference. Industry experts have previously sounded the alarm about the low slot reporting threshold that may push some consumers to illegal gambling.

However, the change and increase in the minimum sum required for the W2-G tax form to be issued will benefit gamblers across the country. More importantly, the increased jackpot threshold will remove unnecessary burden from the IRS and casino operators alike.

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