Will the Jackpot Threshold Ever Be Raised?

Home » Recent Posts » Will the Jackpot Threshold Ever Be Raised?
Share this on:

handpay jackpot

It’s been more than 40 years since the threshold for a jackpot handpay on slot machines has been revisited. We see this question from time to time about when that will be updated:

Is there any hope that the $1200 handpay jackpot for taxes will be increased to at least $1500?

Peggy

You’re a pretty generous one, Peggy – there are a lot of people who want to push for a number much higher than that! If you adjusted the number just for inflation, the $1,200 number today based on when it would set would now be more than $5,000.

Because this is set at the federal level, this would require a change in Congress. And periodically, someone does propose a bill that would update the amount. Last year, for instance, a proposal was made to raise the jackpot level to $5,000. But it never really gets anywhere.

Why? Because although according to IRS rules players are supposed to report ALL wins and ALL losses on their taxes, most don’t, so changing the number would mean a lot less wins reported, and a lot less opportunities to collect taxes on those winnings, since only those who itemize have the opportunity to write off losses against the wins.

So it creates a challenge as it would likely mean the IRS would see less gambling winnings reported, and less taxes to collect on it – it’s a reduction in revenue to the federal government, at a time when deficits already exist, and for many it’s easy to just let the status quo exist and not mess with anything, so that’s what ends up happening.

Benefits for players are obvious, but benefits for casinos exist, who would have less paperwork to manage and less downtime on machines as slot attendants handle fewer handpays (which means perhaps less slot attendants needed too). However, none of this generates any benefits at the federal level, unfortunately.

So while there’s hope, we wouldn’t put a lot behind it right now, as unless something major happens that nudges congresspeople to move on this issue, it’s one of those things that likely will get some lip service but ultimately won’t change anytime soon.

Have a question? Submit yours here!


Share this on:

Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Play Online Casinos

Sign Up with BetMGM Casino and get a Deposit Match up to $1,000, plus $25 in Site Credits on the house! Available in MI, NJ, PA & WV. US promotional offers not valid in Ontario.

Use code SWITCH2500 for a 100% deposit match up to $2,500, and 2,500 Reward Credits, with $25+ in wagers placed (MI, NJ, PA & WV).

New sign-ups with DraftKings Casino in MI, NJ, PA & WV will receive $35 Casino Credits, plus Play $5 and Get $50 Back in Casino Credits Instantly!

Sign Up and deposit $10+ at FanDuel to get a Welcome Offer of a $20 Bonus + Up to $1,000 Play it Again based on your net losses in the first 24 hours in MI, NJ, PA & WV!

Play Social Casinos

Ready to give Show Me Vegas Slots a try? Get 10 million coins to play Show Me Vegas Slots with promo code SWITCH!

New players to 88 Fortunes Slots receive 5 billion coins as a thank you for signing up!

Sign Up and get a Welcome Bonus of 2,000,000 FREE Gold Coins & 2 FREE Sweeps Coins. Get started today!

Sign Up for LuckyLand Slots and get a Welcome Bonus of 7,777 FREE Gold Coins & 10 FREE Sweeps Coins!

Online Game Spotlight
Double Patriot

Classic Everi Three-Reel Slot with a Fresh Twist

Play Online Sportsbooks

Sign Up to get a Bet $5, Get $150 in Bonus Bets if your bet wins!

Use code SWITCH1000 to get your first bet back in Bonus Bets, up to $1,000, if you lose.

​SIGN UP to get $150 instantly in Bonus Bets* (NC, $5+ bet required) or up to $1500 in Bonus Bets* Back if Your First Bet Doesn't Win (All Other Eligible States)!

New Players get a $1,500 No Sweat Bet, a $50 Bonus Bet with $5 deposit, & Get a No Sweat NBA SGP Every Day of NBA Playoffs! New players outside MA also get 20% Match up to $1,000 (25x PTR).

Social Game Spotlight
Kronos Unleashed Slot

Frequent Feature Livens Up Super Tall Reels

Dragons vs. Pandas Slot Machine

Two Sets of Reels Battle it Out