Bill Overview
Title: To amend the Internal Revenue Code of 1986 to increase the information reporting threshold for slot winnings.
Description: This bill provides that no tax information return for winnings from one slot machine play shall be required unless the winnings are at least $5,000 (without reduction for the amount wagered). This threshold amount is adjusted for inflation for calendar years beginning after 2023.
Sponsors: Rep. Titus, Dina [D-NV-1]
Target Audience
Population: Individuals who play slot machines
Estimated Size: 53000000
- Slot machines are casino gambling devices where a player can win money.
- Individuals who play slot machines are the primary group affected by this bill.
- The American Gaming Association reported there are 465 commercial casinos in the U.S. as of 2020.
- A Gallup poll found that 26% of Americans visited a casino in 2019.
- The Las Vegas Convention and Visitors Authority stated that there were 42.5 million visitors to Las Vegas in 2019, many of whom play slot machines.
- Many casinos are located in tourism heavy areas worldwide, significantly affecting tourists.
- Gambling is a $449.3 billion global industry as of 2021.
- Gambling, including slot machines, is legal and very popular in various countries worldwide.
- Americans comprise a significant portion of casino goers and slot players globally due to the presence of major casino cities like Las Vegas and Atlantic City.
Reasoning
- The population distribution for this policy targets regular gamblers, especially those frequenting slot machines in casinos.
- It's important to have a diversity of individuals, including casual gamblers, frequent gamblers, and those unaffected by policy to cover the spectrum.
- The budget limits implementation extensively, necessitating focus on those most likely affected, potentially casino visitors.
- Given policy specifics, interviews should not only consider individuals living near casinos, but also tourists who play slots during visits.
Simulated Interviews
Casino Floor Manager (Las Vegas, NV)
Age: 34 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- The policy will likely see more people winning larger amounts tax-free, which might attract more tourists.
- I don't gamble frequently enough for this to personally affect my tax situation.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Retired (Biloxi, MS)
Age: 50 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- Raising the threshold reduces hassles of tax paperwork for small wins.
- This makes my casino visits more enjoyable without worrying about taxes.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
Bartender (Atlantic City, NJ)
Age: 26 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 5/20
Statement of Opinion:
- Minimal personal impact as I do not play slots often.
- Could potentially increase tips during big wins as patrons are less stressed.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Professional Gambler (Tampa, FL)
Age: 41 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 7.0 years
Commonness: 2/20
Statement of Opinion:
- Positive change saving time on tax filings for small wins.
- This should allow me more focus on my strategies and gameplay.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Teacher (Phoenix, AZ)
Age: 60 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 8/20
Statement of Opinion:
- No real impact on me as I don’t gamble much.
- However, I’ve heard others in my community excited for easier tax filing.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
IT Specialist (Chicago, IL)
Age: 29 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- Though most of my play is online, this could lead to increased participation in land-based casinos.
- Not sure I'll benefit directly immediately, but less tax paperwork is great.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Retired Nurse (New York, NY)
Age: 72 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 7.0 years
Commonness: 6/20
Statement of Opinion:
- Less paperwork makes my casino trips more about fun and less about administration.
- I think this will make wins feel like pure wins.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Casino Host (Reno, NV)
Age: 37 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- I see this mostly benefiting frequent players; it simplifies their tax management.
- Overall, it's good for business, might bring more high-roller plays.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
Marketing Manager (Miami, FL)
Age: 47 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 6.0 years
Commonness: 5/20
Statement of Opinion:
- Gambling trips will be slightly less stressful with less tax paperwork concerns.
- It’s a positive minor change but nothing life-altering.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Student (Los Angeles, CA)
Age: 25 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 7/20
Statement of Opinion:
- Unlikely to have any personal impact, since I’m not a consistent gambler.
- However, useful for discussions in my study groups on impact of tax policies.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Cost Estimates
Year 1: $5000000 (Low: $2000000, High: $10000000)
Year 2: $5000000 (Low: $2000000, High: $10000000)
Year 3: $5000000 (Low: $2000000, High: $10000000)
Year 5: $5000000 (Low: $2000000, High: $10000000)
Year 10: $5000000 (Low: $2000000, High: $10000000)
Year 100: $5000000 (Low: $2000000, High: $10000000)
Key Considerations
- Alignment with modern tax thresholds and inflation adjustments can reduce the outdated administrative processes associated with lower-value tax reporting.
- Casinos and taxpayers will benefit from simplified tax procedures, potentially improving customer satisfaction and compliance with tax laws.
- Effects on illegal gambling or underreporting are expected to be minimal as enforcement focuses on correct taxability rather than low-level reporting.