This victory stemmed from changes to the tax law sought by the AGA in 1998 and from a sustained lobbying effort involving congressional allies. In the past several years, congressional tax committees rejected on a bipartisan basis the Treasury Department's proposal to impose tax withholding on bingo and keno. This information reporting is sufficient to meet the needs of the IRS to learn of potentially taxable winnings by patrons. There is no basis to impose burdensome withholding requirements such as those proposed for bingo and keno winnings. Thus far, Rep. Wolf has not introduced legislation on either issue.
Commercial gaming is already among the most highly taxed business enterprises.
Either of the suggested tax bills would be punitive in nature, causing unwarranted negative consequences for gaming shareholders, employees, and patrons. In January 2000, the Clinton administration proposed that gaming establishments such as casinos assist in the enforcement of child support payments owed by gaming patrons. The proposal would be grafted onto existing federal tax reporting and withholding by gaming establishments. In late March, the White House indicated that the administration is withdrawing this proposal following receipt of input from affected gaining businesses. The AGA agrees that all responsible citizens should satisfy their legal obligations, including overdue child support.