15 July, 2025
irs-proposes-major-increase-to-jackpot-handpay-limit-gamblers-react

BREAKING: The IRS has just announced a potential overhaul to the jackpot handpay limit for casino winnings, a move that could significantly impact gamblers across the U.S. Currently set at $1,200 since 1977, this threshold may soon rise to $5,800, easing the burden on both players and casinos.

This urgent update comes as frustrations grow among gamblers, who report that the existing limit has not kept pace with inflation. According to U.S. Representatives Dina Titus (D-Nevada) and Guy Reschenthaler (R-Pennsylvania), the purchasing power of $1,200 today is equivalent to approximately $6,200 in 1977. As a result, the outdated threshold has led to a spike in reportable jackpots, which place a tax burden on winners and compliance challenges on casinos.

Under the current system, a jackpot payout of $1,200 or more triggers a hand pay, requiring players to wait for an attendant and complete a W-2G form for IRS reporting. This process can be time-consuming and frustrating, especially in bustling environments like the Las Vegas Strip. Gamblers have expressed their dissatisfaction, as they are forced to remain at their machines, unable to play while waiting for assistance.

The IRS Advisory Council has recommended this increase, and during a recent congressional appearance, IRS Commissioner Danny Werfel expressed support for the proposal, stating, “It’s very valuable when we get input from the taxpaying community and our Advisory Council on when thresholds may be out of date.” The decision, however, ultimately rests with the Treasury’s Office.

The proposed change has garnered bipartisan support, with Titus and Reschenthaler emphasizing its potential to streamline operations within the gaming industry. “Increasing the threshold will eliminate this onerous red tape, ensuring the gaming industry can continue to support good-paying jobs and foster economic growth in Pennsylvania and across the country,” Reschenthaler noted.

As discussions in Congress continue, the gambling community is hopeful for swift action on this pressing issue. The proposed increase could alleviate frustrations for countless players, allowing them to enjoy their wins without the cumbersome tax reporting process that currently hinders their experience.

Stay tuned for more updates on this developing story, as the IRS’s decision could reshape the landscape of casino gaming and taxation for years to come.