Overview
- The higher W‑2G threshold takes effect January 1, 2026, with jackpots paid in 2025 still subject to the long‑standing $1,200 rule.
- The change implements provisions of the One Big Beautiful Bill Act and is reflected in the IRS draft Form W‑2G posted this week.
- Casinos and players are expected to face fewer interruptions as fewer mid‑level slot wins trigger paperwork and hand pays.
- The IRS included the project in its 2025–2026 Priority Guidance Plan, signaling more guidance as the rulemaking process proceeds.
- Gamblers must still report all winnings for tax purposes, and some coverage reports the threshold will be indexed to inflation beginning in 2026.