Nevada casinos adjust to US penny phase-out: Report
The Nevada Gaming Control Board (NGCB) has issued new guidance to casinos and gaming venues as the United States phases out penny production.
Last year, the U.S. Department of the Treasury announced it would halt the production of one-cent coins, citing rising costs and declining practical use. The Treasury said the cost of producing a penny climbed from 1.3 cents to 3.69 cents over the past decade. The agency expects to save an estimated $56 million annually by ending production.
The Nevada Gaming Control Board (NGCB) said discussions with casino operators began months before the official directive, as policymakers anticipated the impact on gaming floors.
“There were some really, really deeper discussions with the industry,” Chen Lengsavath, NGCB Taxes and Licenses Director, quoted by KOLO TV. “Just whoever we could talk to or who wanted to talk about it, and that was pretty much the big places down on the strip.”
Lengsavath added that conversations extended beyond Las Vegas to smaller venues across the state. “We also talked to other casinos around the state and even small establishments that have gaming licences about their plans to handle the penny problem,” she said, according to KOLO TV.
Casinos must round to nearest five cents
Under the directive, casinos and restricted licence holders in Nevada are required to round cash transactions to the nearest five cents once pennies become scarce.
The NGCB said that operators may round up or apply a combination of rounding up and down, but they must do so consistently and transparently. Patrons must also be clearly informed of each venue’s policy through signage, particularly at ticket redemption points, as well as via kiosks and on-screen messaging systems.
The gaming regulator’s guidance aligns with Treasury recommendations. The agency advises businesses to adopt “symmetrical rounding” for cash payments. It added that rounding applies only to cash transactions. Electronic payments, including card and digital methods, will continue to be processed to the exact cent.
For casino operators, the changes also carry implications for financial reporting and taxation. Lengsavath stressed the need for accurate documentation when accounting for rounding adjustments in gross gaming revenue.
“The licensees would have the option of either deducting or not,” she told KOLO TV. “So, we have to make sure they pay the correct taxes for that.”
Charity option considered for leftover cents
Some casino operators have proposed offering patrons the option to donate small residual amounts that cannot be evenly rounded to five-cent increments.
The NGCB said it is open to this approach, treating such amounts as voluntary charitable contributions made after payouts are calculated. However, regulators have made clear that these donations cannot be deducted from gross gaming revenue (GGR) for tax purposes.
The U.S. Treasury has similarly encouraged transparency and fairness in rounding practices. The agency emphasised that businesses should clearly communicate any adjustments to customers and accurately reflect them in receipts and systems.
Despite the halt in production, pennies will remain legal tender and continue circulating. The Federal Reserve is expected to recirculate the roughly 114 billion coins already in existence for as long as possible, with their longevity dependent on consumer behaviour.
Officials have also urged the public to spend any pennies they have to ease the transition and support businesses as they adapt their systems.
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