Quite honestly, I don’t quite believe this. Within days of that $1200 single-jackpot limit law going into effect, slot-machine manufacturers came up with the idea of $1199 jackpots. I really can’t believe that there is actually a $1200 single-jackpot payout anywhere in the USA.
If you already have $20 or so credit on your machine and you hit an $1199 jackpot, that puts you over, of course the correct response to that is to play off the extra $20, then cash out. A lot of people don't even know about the $1200 ceiling.
It happened to me back in the 90s at a river boat in Iowa, I live in Illinois. I cashed in a $1200 jack pot and was issued a w-2 on the spot, Iowa taxes were withheld in cash. Live and learn.