# Plain Language Summary of H.R. 6937

Right now, casinos and other gambling businesses have to report your slot machine winnings to the IRS if you win $1,200 or more from a single spin. This bill raises that threshold to $5,000, meaning casinos would only have to file a report with the IRS when you win $5,000 or more from one slot machine play.

Here's what this means in practical terms: if you hit a jackpot for $3,000, the casino wouldn't have to report it to the IRS anymore. The casino would still report your win to you on a form for your own records, but the IRS wouldn't automatically get notified. This change applies starting January 1, 2023. The bill also includes an automatic adjustment—every year after 2023, the $5,000 threshold will increase slightly to account for inflation, so it stays roughly equivalent in value over time.

The supporters of this bill argue that raising the threshold reduces paperwork burden on casinos and makes sense given inflation since the $1,200 threshold has been in place for decades. Critics might worry that higher thresholds make it harder for the IRS to track gambling income and could reduce tax compliance. For most casual gamblers, this change wouldn't matter much since most people don't win $5,000 from a single spin anyway. But for frequent or serious gamblers, it means larger wins would fly under the IRS radar unless they voluntarily report them on their tax returns.

To amend the Internal Revenue Code of 1986 to increase the information reporting threshold for slot winnings.

Titus, Dina

 <p>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.</p>