OBBBA – Last month I wrote about the “One Big Beautiful Bill Act,” and specifically the impact of the “No Tax on Tips” provision. But a big question, one that could have a dramatic impact on those gratuities, is still up in the air. Despite the president’s signature on July 4, no one seems to know exactly when the new $2,000 W2G reporting limit listed in the bill goes into effect. The IRS has not responded to my request for a comment (didn’t really expect they would). But neither the American Gaming Association (AGA) nor the American Gaming Equipment Manufacturers (AGEM) have learned what’s going on either. You can bet their questions will get answered sooner than mine.
For now, we are all waiting for the IRS to issue some clarifying guidelines. Daron Dorsey, the CEO at AGEM, says when that notification comes each of his individual members will have to make technical and software changes because “there is no ‘one size fits all’ solution” to modifying their machines and their systems. But for casino operators this week and the weeks to come, do they still have their machines lockup and/or issue W2Gs at $1,200??? What if a customer argues with them about their $1,800 jackpot? Maybe Mark Twain said it best: “No man’s life, liberty, or property are safe while the legislature is in session.”
Just In! – The IRS issued some proposed clarifications on September 22, with a comment period open until October 22. The encouraging item was that they are saying that all forms of tips, from cash, credit cards, debit cards, gift cards and the like all qualify. That had been one of the several confusing points in this bill. No mention yet about the $1,200 issue from above. You can see the full Federal Register posting here.
THE MERGE – The impact of the IGT/Everi/Apollo buyout appears to be underway as personnel changes and dismissals have hit the industry in the last few weeks. If you haven’t done so yet, better check to see who your local sales rep or technician is now. It is always sad when good folks are let go for reasons beyond their control.
OPEN INVITATION – Nevada was hit with a ransomware attack on August 24 that shut down most statewide services for days and days. Does anyone other than me find it more than coincidental that this occurred just two weeks after Las Vegas hosted not one, but two, major conferences dedicated to cyber security and hackers (both good and bad)? They even featured contests to see who could break into selected sites the fastest. Black Hat USA 2025 was at Mandalay Bay on August 2-7, followed by DEF CON at the Convention Center on August 7-10. Just sayin’.
More Just In! – Las Vegas Metro police announced that a teen suspect was booked into the Clark County Juvenile Detention Center on September 17 on six charges related to the ransomware attacks on the MGM and Caesar’s back in 2023. His name was withheld due to his age. Back in November of 2024, federal charges were filed against five people associated with the Scattered Spider cybercrime group in this same case.
NOT NORMAL – For the last few years, it seemed completely normal for executives to jump ship from Aristocrat to be welcomed aboard by CEO Matt Wilson at rival Light & Wonder (nee Scientific Games/Bally Tech). But in a headline of the “man bites dog” variety, a highly ranked exec is departing L&W to join CEO Trevor Croker’s crew at Aristocrat. Dylan Slaney, who was most recently CEO of Light & Wonder’s iGaming, joins ATI on November 3, 2025 subject to regulatory pre-approvals. The natural order of things has been severely disrupted.
ABNORMAL, BUT WELCOME – Likewise, it had been the norm for industrial/retail/entertainment spaces to be repurposed into casinos. Recall an upstate NY shopping mall becoming Turning Stone, the Bethlehem steel plant becoming the Sands/Wind Creek Bethlehem and New Orleans Harrah’s rising on the site of the old Rivergate Convention Center. But now one of the most historically significant casinos (Harrah’s Reno) is being turned into non-gaming entertainment and restaurant spaces. Las Vegas-based Fine Entertainment confirmed to the Reno Gazette Journal three weeks ago that several planned restaurants and bars will be built on the old casino/hotel’s main floor. They will reportedly be similar to other Fine operations in Southern Nevada.
The new spaces will be built within 180,000 square feet of the former Harrah’s Reno property, with openings set for some time in 2026. In a newspaper quote, Fine CEO Jonathan Fine described the project as “Las Vegas times 10” and one that will “bring an entirely new energy to downtown Reno.”
At one time, the original Harrah’s Club was the most admired and influential gaming operation in the country. Nonetheless, it will be good to see some new life on the old block.
COMPLETELY ABNORMAL – What crazy thing is next? The Las Vegas Strip lowering room prices???
