Tax Withholding Requirements for Riverboat Gaming Winnings, March 2026

Indiana Department of Revenue

Indiana Government Center • 100 N. Senate Ave. Indianapolis, IN 46204 • dor.in.gov Subject: Requirements on Withholding Individual Income Tax on Winnings from Riverboat Gaming Publication Date: March 2026 Effective Date: Upon Publication

Replaces Notice #16, dated December 2025 Disclaimer: Departmental notices are intended to provide nontechnical assistance to the general public. Every attempt is made to provide information that is consistent with the appropriate statutes, rules, and court decisions. Any information that is not consistent with the law, regulations, or court decisions is not binding on the department or the taxpayer. Therefore, the information provided herein should serve only as a foundation for further investigation and study of the current law and procedures related to the subject matter covered herein. This document does not meet the definition of a "statement" required to be published in the Indiana Register under IC 4-22-2-7.

Summary of Changes

Other than technical, nonsubstantive changes, this bulletin has been updated to reflect new statutory requirements for withholdings on slot machine winnings and keno winnings for 2026 and later.

Introduction

Facilities licensed to conduct a gambling operation under IC 4-33-2-10 or IC 4-35-2-5 are required to withhold Indiana individual adjusted gross income tax on winnings from slot machines and keno games. Except as provided below, winnings from a slot machine play (not reduced by the wager) valued at two thousand dollars ($2,000) or more and winnings from a keno game (reduced by the wager) valued at two thousand dollars ($2,000) or more shall be subject to withholding by the facility. The facility shall withhold tax at 2.95% for 2026 and 2.90% for 2027 and later. For 2027 and later, the two-thousand-dollar ($2,000) threshold will be adjusted annually for inflation. The revised thresholds under IRC § 6041 published by the Internal Revenue Service for a calendar year will be the new threshold for withholding under this notice for that calendar year.

Departmental Notice #16 Reference(s): IC 6-3-4-8.2

Indiana Department of Revenue • Departmental Notice #16

The amount of tax withheld shall be paid monthly to the department on the twenty-fourth calendar day of each month. Any taxes collected during the month but not paid to the department are required to be paid to the department at the same time the following month's taxes are due. The payment shall be made by electronic fund transfer as defined in IC 4-8.1-2-7. The licensed facility shall file a daily and monthly report to reconcile the amount of withholding taxes paid to the department. The daily and monthly reports shall be filed as a part of the same form for reporting the admissions and wagering taxes paid under IC 4-33-12, IC 4-33-13, and IC 4-35-2-5. Slot machine and keno game winnings from a gambling operation that are reportable for federal income tax purposes shall be treated as subject to withholding under IC 6-3-4-8.2, even if federal tax withholding is not required. An annual recap shall be filed by the licensed facility listing the name, address, Social Security number, the amount of winnings, and the amount of Indiana adjusted gross income tax withheld. The annual recap is due to the department by January 31 of the year following the year of the withholding. If you have any questions concerning this notice, please contact the Tax Policy Division at taxpolicy@dor.in.gov.

Christopher W. Russell General Counsel Indiana Department of Revenue