HomePublicationsNewsletter ArchiveNewslettersVolume 21Issue 17AGA Continues Dialogue with IRS on Proposed Changes to Tax Rules for Casinos

Last week, the American Gaming Association (“AGA”) IRS task force debriefed on key takeaways from a recent meeting with IRS and Treasury officials and reviewed the list of questions raised during the discussion.

In an effort to build upon AGA’s longstanding working relationship with the IRS, the AGA submitted a follow-up letter expressing appreciation for the productive dialogue and reiterating the industry’s principle concerns with the proposed regulations, which include:

· The significant impact of lowering the reporting threshold from $1,200 to $600 on casino operations, consumers and the IRS;

· The industry’s significant labor cost and lost business revenue to comply with tax reporting requirements;

· Any potential new reporting system based on electronic player tracking needs to be optional for the casino and voluntary for the patron;

· The potential technological challenges and limitations of electronic player tracking envisioned under the recent IRS proposals;

· The disparate impacts of the IRS proposals to the wide-ranging and diverse operations of gaming establishments;

· The importance of preserving, as our industry’s primary marketing tool, our loyalty programs and players rewards clubs; and

· The potential for increased accuracy and efficiency in tax reporting if authorization is granted for annual reporting of customers’ wins and losses.

The AGA’s next step is finalizing formal written comments on the IRS Patron Safe Harbor Notice and proposed regulations, which are due June 1 and 2, respectively.

The AGA continues to pursue its goal not only to educate IRS officials on gaming’s many complexities, but to also to offer productive solutions that support the interests of the casino gaming industry, its customers and the IRS.


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