A proposed amendment in the Senate-passed federal budget bill has sparked concern among Nevada officials and casino stakeholders due to its potential impact on the gambling industry. The amendment aims to limit declarable losses for gamblers, which could significantly affect high-limit and professional gamblers by restricting their ability to claim federal tax benefits from losses.
U.S. Representative Dina Titus, representing Nevada, has vocally opposed this provision, emphasizing its potential harm to poker players and gamblers by limiting their loss deductions. She is advocating for a legislative solution to ensure gaming losses are treated fairly within the tax code.
Derek Stevens, co-owner of several Las Vegas casinos, has echoed Titus’ concerns. The proposed change would allow gamblers to deduct only 90 percent of their losses from their winnings. Consequently, a gambler who breaks even over the year would still owe taxes on 10 percent of their winnings, unlike the current system where they would pay zero.
Industry experts warn that such changes could deter professional gamblers from operating within regulated U.S. markets, pushing them towards unregulated or offshore options. This shift could negatively impact local economies, notably in gambling hubs like Las Vegas and Reno.
As of now, the House version of the bill does not include this tax amendment, and Rep. Titus has expressed her intent to vote against the bill if it includes the provision. The bill requires approval from the House before it can be signed into law by the President, who has urged Congress to finalize it before July 4.