UPDATE 12/17/25: Late in the year the IRS posted draft documentation finally confirming the change. Click here to read the latest update. The below remains for historical purposes.
Back in the summer, as details about the One Big Beautiful Bill tax changes were being reviewed, a few industry people declared victory and confidently stated the reportable jackpot handpay limit had been raised from $1,200 to $2,000 starting in 2026.
At the time, we encouraged players to use caution, because those convinced that the bill had introduced a change weren’t involved in the bill creation process, and based on the changes in the bill we weren’t confident the jackpot level had changed at all. We also noted that IRS guidance would be the clearest sign whether anything changed or not, and that process would take a few months.
Well, it’s November. The news outlets that were gushing about the change haven’t posted anything since. So what’s going on? We’re starting to get questions from players:
Any confirmation that the slot machine jackpot threshold will be raised to $2000?
Eric
All signs point to no change at this point.
Let’s start with the IRS guidance. Our friends at CDC Gaming flagged back in September when guidance was issued about the tax bill that it did not address the reportable jackpot handpay level. The closer we get to January 1 without the IRS confirming this change happened and what it means, the less likely the change was what people thought it was.
As we shared in our original post, the change was reflective of income from sources like freelance gigs and sweepstakes prize winnings, and hooked into that limit as opposed to the jackpot threshold. We also found it unlikely that the losses deduction would be lowered as a tax raising initiative, and then a change to raise the jackpot threshold, which by all accounts would lower the amount of gambling income reported (legal or not), would somehow also be passed in the bill.
More recently, came up at the industry’s largest conference, the Global Gaming Expo, during a panel. CDC Gaming also covered this, and the panel said it should be taken with caution, specifically until more clear guidance that the change happened was issued. Well, that hasn’t happened.
This is increasingly looking like the PR that came out when it was announced the Palms casino in Las Vegas would offer UNO card game table games. It turns out people didn’t read the press release, which simply announced a lounge for people to be able to play the UNO card game, not bet on it.
The devil’s in the details, the saying goes, and this year has been a bit of a wild year of reporting vs. reality. Vegas isn’t dead, and based on where things stand the jackpot handpay limit is still $1,200.
But maybe all this attention on the topic, and the inevitable disappointment and frustration players will face as the calendar turns and the changes don’t happen, will finally spur some action.
