Will Casinos change to $1,999 for a Royal on 50-Cent Machines?

Do you think casinos will change their VP pay tables to $1,999 for hitting a royal at the $0.50 level, considering the new tax law?

As we discussed in yesterday's QoD, we don't think casinos will widely change video poker paytables to cap the royal flush payout at $1,999 for 50-cent denominations due to the new $2,000 IRS reporting threshold. Some might, but most won't.

Historically, some VP games capped royals at just under $1,200, paying 1,199 credits on a max-bet quarter machine. This avoided hand pays and W-2Gs. But it was never widespread. After all, the royal for a max bet on a quarter machine is $1,000, so the extra $199 increased the cost to the casino. Also, capping a quarter progressive at $1,199 actually discouraged play from knowledgeable gamblers, who had no way of knowing what the progressive should be based on total coin-in since the last time it hit.

That said, reducing the 50-cent royal payout on non-progressive VP machines by $1 or so might tempt quarter players to go up one denom and double their max bet, along with attracting gamblers wanting to avoid W-2Gs. But we doubt that too many will bother with the hassle of doing so for those players.

What do you think?

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Comments

Donzack Jan-18-2026

Demonstrate

Let’s make some signs,”nay nay we won’t play” and stop playing till the tax problem is solved.

Kevin Lewis Jan-18-2026

They won't bother

50 cent denomination isn't that popular anyway.

And as far as W2Gs are concerned, we owe income tax on our winnings whether they're generated or not. The other day, I found a nickel on the street; I picked it up and immediately mailed a penny to the IRS.

Randall Ward Jan-18-2026

inflation

really same comment as yesterday but it's supposed to adjust for inflation

David Berton Jan-18-2026

VP

The bosses will keep it at $2,000 for their employees. Imagine all the tips the runners will get from a hand pay that size. That’s why the last $100 or $200 is always given in $20 bills instead of $100s.

Kevin Rough Jan-18-2026

Advantage

I can't see why a casino would not have a $1999.50 payout for a 50c royal flush.  It would cost the casino less money to process since filing those Forms W2G cost time and money.  Plus where everything else is equal, I could see people choosing the casino where the 50c royal doesn't generate paperwork over the casino where it does.  As for the yearly adjustments, the machines are going to have to be adjusted yearly for the amount where the machines lock up anyway.

HerbertTheFlea Jan-18-2026

One year change

Seems like a lot of work for a change that will be irrelevant next year as the amount that triggers a w2-g now goes up annually with inflation.

dblund Jan-18-2026

Time to change?

I've been a casual quarter VP player for a lot of years now, and this might be the change that has me doubling up my bets.  If the machines aren't changed to the $1999 payoff, then maybe next year.  I wonder if we might see a lot more machines set to take 50 cent bets, at least over the course of this year.

IdahoPat Jan-20-2026

When I become POTUS ...

I will sign an EO that raises the taxable threshold to $4000.01 to avoid the very scenario being raised here. If we had anyone with a clue about gambling within the IRS, today's increased threshold would've been $2000.01.

Question of the Day - 18 January 2026

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