As lawmakers debate a sweeping GOP-backed budget bill, a key provision targeting gambling deductions has come under fire from industry voices—and from Nevada Rep. Dina Titus, who is vowing to correct what she sees as a serious misstep. The bill, which has passed the Senate and returned to the House, would reduce allowable deductions for gambling losses to 90% of winnings, a change critics say unfairly penalizes professional gamblers and could damage Nevada’s economy.
“I’m working on a legislative fix that fairly treats gaming losses in the tax code,”Titus said, responding to mounting concerns over the financial consequences of the bill’s language.
Gambling Community Pushes Back
Under the Senate’s version of the so-called “Big, Beautiful Bill,” a gambler who both wins and loses $100,000 would still be required to pay taxes on $10,000—despite breaking even. For professional players, that shift could be devastating.
Phil Galfond, a professional poker player and owner of Run It Once Poker, voiced strong opposition in a video posted to X. “This is really bad. Whether you’re a poker player, [Daily Fantasy Sports] player, a sports bettor, any kind of gambler – professional or recreational – but especially professional,” he said. “Completely untenable. You can’t be a professional gambler in the U.S. if this goes through.”
Galfond also warned that the ripple effects could extend well beyond players: “That will have a ripple effect on industries that depend on professionals.”
Fellow poker pro Doug Polk also weighed in, urging Rep. Chip Roy (R-Texas) to take action. “Chip, I am in your district. There is a provision in the Senate version that will kill professional gambling. This will negatively impact THOUSANDS of Texans,” Polk wrote in a post on X.
Economic and Regulatory Concerns Raised
Titus emphasized the broader implications for the gambling ecosystem and Nevada’s economy. “It pushes people into the black market if they don’t do regulated gaming because they have a tax disadvantage, and the black market doesn’t pay taxes, isn’t regulated, doesn’t help with problem gaming, so it’s bad for the industry as well as for the player,” she said.
She also noted that while professional players will be hit hardest, recreational gamblers and the tourism industry would not be spared. “We’re not talking about only professional poker players,” she said. “We’re talking about, you know, the average people who want to play a game of poker or pull a slot machine handle.”
Tax expert and poker player Russell Fox echoed these concerns in a blog post, describing the provision as “ugly towards gambling.” While casual gamblers may be mostly unaffected, Fox warned professionals would need to maintain meticulous logs to avoid IRS issues—and noted the proposal could harm gaming tourism. “Second, this would be another big negative towards gambling and would definitely hurt tourism in areas like Nevada,” he wrote.
Next Steps for Congress
Titus remains determined to remove the deduction cap. If the bill does not return to the House Rules Committee for revision, she said she plans to introduce a separate piece of legislation to address the matter directly.
Source:
“Nevada congresswoman pledges to fix tax bill’s change to gambling deductions”, news3lv.com, Jul 2, 2025
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