Las Vegas casino executives and the American Gaming Association’s top lobbyist recently met with Rep. Jason Smith, R–Missouri, chair of the House Ways and Means Committee, in a push to reverse a new tax provision that will reduce the gambling loss deduction from 100 percent to 90 percent starting Jan. 1. The change, part of the One Big Beautiful Bill Act (OBBBA) signed by President Trump, will be felt in 2026 tax filings and has alarmed both casino operators and professional gamblers.
Industry leaders, including Derek Stevens (Circa, Golden Gate, The D), Bill Hornbuckle (MGM Resorts), Tom Reeg (Caesars Entertainment), and Craig Billings (Wynn Resorts), argue the change unfairly targets professional gamblers and high-stakes players, who will be taxed on unrealized earnings. They report that some big bettors are already avoiding future wagers, raising concerns about impacts on Las Vegas tourism and gaming revenue nationwide.
The American Gaming Association and major casino operators are urging Congress to restore the full deduction, calling it a matter of fairness that affects not just gamblers but also employees and state economies.
Rep. Dina Titus, D-Nev., has introduced the FAIR BET Act to reverse the deduction change, warning it could push players to unregulated offshore markets. The bill has bipartisan support. Nevada’s senators and Sen. Ted Cruz, R-Texas, have also attempted to restore the deduction through the FULL HOUSE Act.
Industry insiders claim the change was likely inadvertent and stress its negative consequences for casual and professional gamblers alike. No member of Congress has claimed responsibility for the provision’s inclusion in the OBBBA.
President Trump, asked about eliminating federal taxes on gambling winnings, did not commit to the idea, noting he would have to consider it.
The OBBBA, signed this summer, also reduces federal tax obligations for tipped workers and overtime pay, and is projected to increase the federal deficit by over $3.4 trillion in the next decade.