Par. 6. Section 1.6041-10 is amended by: 1. Revising paragraph (b)(1)(i). 2. Revising the introductory text of paragraph (g)(5). 3. In paragraph (g)(5), designating Examples 1 through 6 as paragraphs (g)(5)(i) through (vi). 4. Revising newly designated paragraphs (g)(5)(i) and (ii). 5. In newly designated paragraph (g)(5)(iv), removing the language “example 3” and adding, in its place, the language “in paragraph (g)(5)(iii) of this section ( Example 3 )”. 6. Revising newly designated paragraph (g)(5)(v). 7. Revising paragraph (i). The revisions read as follows:
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(b) * * *
(1) * * *
(i) For purposes of this section, the term reportable gambling winnings is defined as follows:
(A) For bingo, the term reportable gambling winnings means winnings that equal or exceed the dollar threshold in effect for the calendar year under section 6041(a) and (h) from one bingo game, without reduction for the amount wagered. All winnings received from all wagers made during one bingo game are combined (for example, all winnings from all cards played during one bingo game are combined).
(B) For keno, the term reportable gambling winnings means winnings that equal or exceed the dollar threshold in effect for the calendar year under section 6041(a) and (h) from one keno game reduced by the amount wagered on the same keno game. All winnings received from all wagers made during one keno game are combined (for example, all winnings from all “ways” on a multi-way keno ticket are combined).
(C) For slot machine play, the term reportable gambling winnings means winnings that equal or exceed the dollar threshold in effect for the calendar year under section 6041(a) and (h) from one slot machine play, without reduction for the amount wagered.
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(g) * * *
(5) Examples. The following examples illustrate the provisions of this section. For each example, assume that for purposes of the aggregate reporting method in this paragraph (g), casino R's “information reporting period” for all calendar years is a gaming day that begins at 3 a.m. and ends at 2:59 a.m. the following day (except for January 1 and December 31), that (ignoring the inflation adjustment in 6041(h) for simplicity of illustration) the dollar threshold in effect for each calendar year under section 6041(a) is $2,000, and that individuals C, D, and E are U.S. persons.
(i) Example 1. On Day 1, between 7 a.m. and 4 p.m., C places five wagers at casino R on five different slot machines. The first two wagers result in no win. The third wager results in a $2,000 win. The fourth wager results in a $2,500 win. The fifth wager results in an $800 win:
(A) Under paragraph (b)(1)(i)(C) of this section, there are reportable gambling winnings from the slot machine play of $4,500 ($2,000 + $2,500). The $800 win is not a reportable gambling winning from slot machine play because it does not equal or exceed the dollar threshold.
(B) Because all the amounts were won on the same type of game (even though each of the winnings occurred on different machines) during the same information reporting period, R is permitted to use the aggregate reporting method under this paragraph (g). If R decides not to use the aggregate reporting method, a separate Form W-2G would have to be filed and furnished for the payment of reportable gambling winnings of $2,000 and for the payment of reportable gambling winnings of $2,500. However, if R decides to use the aggregate reporting method, R may report total reportable gambling winnings from slot machine play of $4,500 ($2,000 + $2,500) on one Form W-2G.
(ii) Example 2. Assume the same facts as in paragraph (g)(5)(i) of this section ( Example 1 ), except that in addition to the winnings described in paragraph (g)(5)(i) of this section ( Example 1 ), at 5 a.m. on Day 2, C wins $3,250 from one slot machine play at casino R. Even though C played the same type of game (slot machine play) on Day 1 and Day 2, under paragraph (b)(2) of this section, the win at 5 a.m. on Day 2 is a win during a separate information reporting period. Under paragraph (g)(2)(i) of this section, the $3,250 of reportable gambling winnings on Day 2 cannot be aggregated with the reportable gambling winnings of $4,500 from Day 1 on a single Form W-2G. Accordingly, if R uses the aggregate reporting method, R must file two Forms W-2G with respect to C's reportable gambling winnings on Day 1 and Day 2. R must report $4,500 of reportable gambling winnings from slot machine play paid to C on Day 1 on the first Form W-2G, and $3,250 of reportable gambling winnings from slot machine play paid to C on Day 2 on the second Form W-2G.
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(v) Example 5. At 2 p.m. on Day 1, D won $2,000 (after reducing the amount of the win by the amount wagered) playing one keno game at casino R. D provides R with his driver's license. The driver's license has D's photograph on it, as well as D's name and address. The driver's license does not include D's social security number. D cannot remember his social security number and has no other identification at the time with his social security number on it. D does not provide R with his social security number before R pays the winnings to D. Because D cannot remember his social security number, D cannot complete and sign a Form W-9. R deducts and withholds under the backup withholding provisions of section 3406(a) and pays the remainder to D. D returns to casino R and at 6 p.m. on Day 1 wins $2,500 (after reducing the amount of the win by the amount wagered) in one keno game. D provides R with his driver's license as well as D's social security card. R generally uses the aggregate reporting method and, in all cases where it is used, R complies with the requirements of this paragraph (g). At 8 p.m. and 10 p.m. on Day 1, D wins an additional $2,800 and $2,700 (after reducing the amount of the win by the amount wagered), respectively, from two different keno games. For each of these two wins, an employee of R obtains the information from D required by this paragraph (g). Under paragraph (b)(1)(i)(B) of this section, each of D's wins from the four games of keno on Day 1 ($2,000, $2,500, $2,800, and $2,700) are reportable gambling winnings. Because D's first win on Day 1 was at 2 p.m. and D's last win on Day 1 was at 10 p.m., all of D's reportable gambling winnings from keno are won during the same information reporting period. Because R satisfies the requirements of paragraph (g)(2)(i) of this section, R may use the aggregate reporting method to report D's reportable gambling winnings from keno. However, pursuant to paragraph (g)(4)(iii) of this section, the $2,000 payment made to D at 2 p.m. cannot be reported under the aggregate reporting method because that payment was subject to backup withholding. Accordingly, if R uses the aggregate reporting method under this paragraph (g), R will have to file two Forms W-2G with respect to D's reportable gambling winnings from keno on Day 1. On the first Form W-2G, R will report $2,000 of reportable gambling winnings and of the amount of backup withholding with respect to the 2 p.m. win from keno, and, on the second Form W-2G, R will report $8,000 of reportable gambling winnings from keno (representing the three payments of $2,500, $2,800, and $2,700 that D won between 6 p.m. and 10 p.m. on Day 1).
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(i) Applicability date. This section applies to payments of reportable gambling winnings from bingo, keno, or slot machine play made on or after January 1, 2026.
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