A new bill would set a higher threshold for what slot winnings need to be reported to the IRS (which Caesars, MGM, and others should love). Should you bet on it passing?
Imagine paying the same rate for anything that you did back in 1977. In that year, the average host cost $54,200, a gallon of gas was $0.63, and $3 bought a dozen eggs along with a gallon of milk with change to spare.
1977 was also the year the Internal Revenue Service (IRS) set its standard for the level of slot machine jackpot that must be reported to the federal agency for tax purposes. That number was set at $1,200 and it hasn't changed since then.
Now, back in 1977, in the age of rotary phones and over-the-air television, $1,200 could buy you a pretty decent car. Now, it's about 10-12 tanks of gas for the average full-size pickup truck.
Gamblers, as you might imagine, don't like having to declare their winnings to the IRS. It takes some of the magic out of the thrill of winning. Having to create the paperwork to report those winnings is also a hassle for Caesars Entertainment (CZR) - Get Caesars Entertainment Inc. Report, MGM Resorts International (MGM) - Get MGM Resorts International Report, Wynn Resorts (WYNN) - Get Wynn Resorts Limited Report, and every other casino operator not just in Las Vegas but around the country (and even on cruise ships sailing from U.S. ports).