AGA tackles IRS; Stevens picks up the tab

Perhaps emboldened by its success with the Small Business Administration, the American Gaming Association is tackling an even bigger, more formidable foe: the Internal Revenue Service. Specifically, the AGA is taking aim at the $1,200 “IRS lockdown,” the threshold at which slot-jackpot winners have to pay taxes, imposed in 1977. Even more specifically, the AGA wants the cap indexed to inflation, which would raise it to $4,700—although the AGA is pushing for a $5,000 cap. (The Obama administration tried lowering it to $600 but that idea was thankfully beaten back.) AGA prexy Bill Miller isn’t the first to have this notion. Reps. Dina Titus (D, below) and Darin LaHood (R) were pushing it last year. The AGA move comes in response to a Trump administration executive order for regulatory reforms that could save money—though we’ll see if a tax cut for bread-and-butter players is what they had in mind.

Still, Global Market Advisors‘ Brendan Bussmann says, “any time you can also simplify taxes, regardless of who you are, is a positive at any level.” Adds Miller, “The increased threshold would not only enable the IRS to focus its limited enforcement resources on those taxpayers who are most likely to have net slot winnings at the end of the taxable year, but would also significantly reduce close interactions required between gaming employees and patrons to issue tax forms.” The regulatory reform “was already long overdue prior to the pandemic, and now has additional importance as the gaming industry emerges from this crisis.” As Miller says, “The current threshold is outdated and imposes significant compliance burdens on both the IRS and the gaming industry.”

Miller, however got off-topic with a blame-the-messenger blast for running stories like this that source offshore bookmaking operations. It’s not the media’s fault that there are potentially dodgy bookies operating overseas or that Americans can access them. The AGA should be putting its voice toward having the federal government crack down on those operations, not demanding that the media bury its head in the sand. Miller’s causus belli is particularly ill-chosen: a case where bookies tipped bettors to a fix that was in in NBA match play. Were it not for clear communication between the books and the media, many would not have been the wiser. Miller fulminates, “Editorial coverage is still perpetuating the illegal sports betting market by continuing to confuse consumers. Simply calling these operators ‘offshore’ is not enough. If I had my way, the media wouldn’t write about these sportsbooks at all, but I recognize that stories on prop bets on atypical things such as politics or the weather will naturally draw some eyes.” If Miller had his way, we wouldn’t have a Fourth Estate or a First Amendment but, fortunately, it’s not up to him.

* This is mighty “george”: Derek Stevens is offering to foot the bill for 1,000 free airlifts as part of his “Keep America Flying” promotion, for which you can sign up—first come, first served—at The D‘s Web site. The hotel’s concierge desk can help you with the nitty-gritty of arranging your trip. Twenty American cities are eligible for the rides, which will be spread over five carriers, including Southwest Airlines. You’ll have to pay for your hotel room, wherever you choose to stay, but that’s a relative bargain at the moment. Said Stevens, “while we’d love for visitors to stop by Downtown Las Vegas, we primarily want to get people back to Las Vegas to experience the attractions and amenities that make it one of the greatest places on Earth.” Bravo. (But it looks like every flight is already full. Say it ain’t so, Derek!)

Jottings: Caesars Entertainment, despite cost-cutting mandates from Eldorado Resorts, is feeling out Danville, Virginia, about a $400 million casino. Caesars projects $30 million a month in gambling revenue … Delta Downs in Vinton, Louisiana, is rumored to be a permanent casualty of the pandemic shutdown … Global Gaming Business reports that Bally’s Las Vegas will be the last of Caesars’ Strip casinos to reopen … No surprise: As reported here yesterday, MGM Resorts International is leading with Bellagio, New York-New York and MGM Grand (sorry, Excalibur) when it begins reopening on June 4. Expected changes will include standalone hand washing stations on the casino floor and contact-less check-in, as well as digital menus. You will be “strongly encouraged” to wear a mask.