What to know about IRS changes to slot jackpot reporting for 2026

Olivia Richman Published 22/12/2025

The IRS recently raised the minimum threshold amount for reporting slot jackpot as part of the One Big Beautiful Bill Act (OBBBA), and it will directly impact many betting winners across the US when they file their 2026 taxes.

Starting on January 1, 2026, players in the United States won’t need to report slot jackpot winnings that are under $2,000. According to the IRS, the amount has been adjusted to reflect inflation and it the minimum threshold will continue to increase annually depending on the rate of inflation moving forward.

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IRS reporting changes a win for casinos, but they want more

An increase in the minimum threshold for jackpot reporting has been something the American Gaming Association (AGA) has been demanding for years. The adjustment will reduce the amount of lower-value jackpot reporting for casino operators and players, allowing both to proceed with fewer disruptions while not having to deal with as much tax busywork.

The W2-G tax form is nothing new. The first slot jackpot reporting threshold was set for enforcement by the IRS in 1977 at $1,200. This amount has stuck around for decades despite the massive inflation since the 1970s. This is the first time it has been raised, and it’s only by $800. For many, that’s too small an increase given how significantly the value of a dollar has changed over the decades.

AGA President Bill Miller voiced frustration over the small increase at the Global Gaming Expo in October, as the AGA was aiming for an increase to $5,000. This would still not amount for the entirety of the inflation that US taxpayers have experienced since 1977, but it’s a lot closer than $2,000.

Miller noted that the AGA will “take the win,” but that it’s going to continue to try to push for the increased $5,000 limit. This has been echoed by other politicians and lobbyists across the United States.

Related: Attempts to legalize online gambling in Indiana have paused

It’s more of a possibility now that the OBBB has been approved. US President Donald Trump has previously floated the idea of eliminating federal taxes on gambling earnings once and for all. President Trump is no stranger to casinos, himself being involved with a few of them over the years. He does not currently own any casinos in the United States that would be affected by these changes.

So far, Trump has made no formal proposal on this concept and legislation towards this end has not been undertaken.

For now, the AGA got at least a small win with the new $2,000 minimum threshold for slot jackpot reporting in 2026 being confirmed by the IRS, although another law beginning that year could more negatively impact gamblers. The IRS will only allow up to 90% of gambling losses to be deducted against gambling winnings, leading to more taxable income for anyone who bets consistently. This comes along with increasing efforts in some US states to limit alternative forms of betting, such as placing limits on sweeps.

As it goes with most days at the casino, you win some, you lose some.

Olivia Richman

About Olivia Richman

Olivia has worked in media ever since graduating from college, with her coverage ranging from traditional newspaper reporting to digital coverage of all things gaming, online betting, and nerd culture. She has traveled around the world pursuing that coverage, from the far coasts of the United States to the busy downtown core of Tokyo, Japan. Olivia’s favorite games include Overwatch and Super Smash Smash Bros, and she has been published at Esports Illustrated, Inven Global, EsportsInsider, Upcomer, and elsewhere.

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