So, if you are in business, you have to issue a 1099 form to any unincorporated payee that you pay $600 or more to in any one year, or you are legally not allowed the deduction on your tax return. But if you are a casino, that threshold is $1,200 to $1,500, depending on the game.
These limits were considered being lowered for casinos down to $600. That only seems fair, right? WRONG! Casinos still have the higher thresholds. On December 30, 2016, the casinos were allowed to keep their special higher limit break.
Why should one type of business get special treatment? Maybe casinos have and always have held a special place in the heart of our government. Just for kicks, google Mary Carter Paint, Resorts International, Meyer Lansky and the CIA. Make sure you have a couple of free hours while drilling down THAT rabbit hole!
I want to open a casino! I can make money off of gamblers who have no idea how bad their odds really are, and the IRS will cut me a break when it comes to my 1099 filing requirements! Awesome!