New reporting threshold for gaming winnings

Beginning January 1, 2026, the edge for gaming income reported on kind W-2G will increase to $2,000. It shall be adjusted for inflation in subsequent tax years.

While that is in keeping with the Form 1099 reporting threshold improve contained within the One Big Beautiful Bill Act, it wasn’t beforehand clear if the rise utilized to gaming income, because it’s reported on Form W2-G slightly than Form 1099.

IRS Issues Draft Instructions for Form W-2G

The IRS is planning to come back out with further steering referring to W-2G reportable gaming income, however posted draft instructions on December 15, 2025 for Forms W-2G and 5754.

According to those directions, “For calendar years after 2025, the minimum threshold amount for reporting certain payments and backup withholding on certain information returns, including the Form W-2G, will be adjusted yearly for inflation. The minimum threshold amount for payments made in calendar year 2026 is $2,000.”

Next Steps for Tribal Casino Operators

Tribal on line casino operators must be prepared for this transformation, which impacts the reporting thresholds for slot machine, bingo, and Keno winnings.  Casinos ought to:

• replace their gaming programs
• prepare employees on the change in reporting thresholds
• make any adjustments to inner procedures
• bear in mind that annal inflation changes could also be made going ahead

Lastly, keep knowledgeable with any further steering that could be revealed by the IRS referring to W-2G gaming reporting.

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