Alert

Beginning January 1, 2026, the threshold for gaming revenue reported on form W-2G increases to $2,000. It will be adjusted for inflation in subsequent tax years.

While this is in line with the Form 1099 reporting threshold increase contained in the One Big Beautiful Bill Act, it wasn’t previously clear if the increase applied to gaming revenue, since it’s reported on Form W2-G rather than Form 1099.

IRS Issues Draft Instructions for Form W-2G

The IRS is planning to come out with additional guidance relating to W-2G reportable gaming revenue, but posted draft instructions on December 15, 2025 for Forms W-2G and 5754.

According to these instructions, “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 casino operators need to be ready for this change, which affects the reporting thresholds for slot machine, bingo, and Keno winnings.  Casinos should:

• update their gaming systems
• train staff on the change in reporting thresholds
• make any changes to internal procedures
• be aware that annal inflation adjustments may be made going forward

Lastly, stay informed with any additional guidance that may be published by the IRS relating to W-2G gaming reporting.

We’re Here to Help

For more information or the latest update on this issue, contact your firm professional.

Additional Resources

• Tribal & Gaming Practice
• Not-for-Profit Practice