Clinton budget would force withholding taxes on some gamblers

Sen. Richard Bryan, D-Nev., said the proposal could be the first step toward prepayment of taxes on table games and slot jackpots.

"It certainly would be a dangerous precedent for the industry," Bryan told the Reno Gazette-Journal.

"We don't want to start down that slippery slope," he said in an interview in Wednesday's editions.

The Clinton administration estimates the move could pump $24 million into the treasury over five years by requiring withholding 28 percent of taxes on keno and bingo wins over more than $5,000.

Clinton pushed the idea unsuccessfully last year. Bryan said he'll use his seat on the Senate Finance Committee to fight it again this year.

Bingo and keno winnings - like other gambling winnings - already are subject to taxes. But gambling operators currently report the winnings to the Internal Revenue Service and gamblers are expected to pay what ever is due come tax time.

Withholding the taxes is unfair, the industry maintains, because the government would collect taxes without considering any gambling losses the taxpayers may have accumulated.

Prepayment of taxes also reduces the amount of money winning gamblers have to spend at a casino, Bryan said.

"If withholding moves to bingo and keno and on to slot play, the impact would be to reduce the amount of money in play at a gaming property," he said.

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