U.S. casinos recently scored a policy victory when the Internal Revenue Service announced it would drop a proposed rule changing how slot machine winnings are reported, the head of the American Gaming Association said.

The rule, which was part of a proposed regulation for the gaming industry, would have required casinos to use loyalty card programs to report slot winnings and losses to the agency, the Law Vegas Sun reported. Loyalty or "club" cards are programs in which patrons receive points for gambling at a casino. Customers can then trade in points for cash or other rewards. http://bit.ly/2j0ECZB

AGA lobbied against the rule. In a statement, association CEO Geoff Freeman said his organization mobilized thousands of casino customers and members of Congress from 11 states in its efforts. The proposal was not included in the final regulation released Dec. 29 by IRS.

"Today's final IRS regulation is a big win not only for gaming companies and millions of casino visitors, but also for state and local governments who would have received fewer gaming tax dollars as a result of what would have been burdensome federal requirements," Freeman said.

IRS also backed down from a proposal to lower the reporting threshold for jackpot earnings from $1,200 to $600.