H.R.2233 - Shifting Limits on Thresholds Act of 2025; SLOT Act of 2025 (119th Congress)
Summary
H.R.2233, the Shifting Limits on Thresholds Act of 2025 (SLOT Act of 2025), proposes to amend the Internal Revenue Code of 1986 by increasing the information reporting threshold for slot machine winnings. Currently, slot winnings exceeding $1,200 are subject to information reporting. The bill seeks to raise this threshold to $5,000, with an inflation adjustment starting in 2026. This adjustment would be calculated using the cost-of-living adjustment under section 1(f)(3) of the Internal Revenue Code, substituting 2025 for 2016 in subparagraph (A)(ii).
Expected Effects
If enacted, H.R.2233 would reduce the number of slot winnings reports filed with the IRS. This could simplify tax compliance for individuals and reduce administrative burdens for casinos. The change would take effect for payments made after December 31, 2025.
Potential Benefits
- Reduced paperwork for individuals who win between $1,200 and $5,000 from slot machines.
- Decreased administrative burden for casinos related to reporting requirements.
- Potential increase in gaming activity due to reduced reporting friction.
- Simplification of tax compliance for a segment of the population.
- Inflation adjustment ensures the threshold maintains its real value over time.
Most Benefited Areas:
Potential Disadvantages
- Potential decrease in tax revenue collected due to underreporting of winnings.
- Increased opportunity for tax evasion on slot machine winnings.
- Complexity added to the tax code with the introduction of a specific inflation adjustment calculation.
- Perception of unfairness if other types of gambling winnings are not similarly treated.
- Potential for increased problem gambling if reporting friction is reduced.
Most Disadvantaged Areas:
Constitutional Alignment
The bill falls under the purview of Congress's power to lay and collect taxes, duties, imposts, and excises, as outlined in Article I, Section 8, Clause 1 of the Constitution. The amendment to the Internal Revenue Code is a valid exercise of this power. There are no apparent conflicts with other constitutional provisions.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).