Nevada’s congressional delegation and casino industry leaders are pressing for swift congressional action to reverse a federal tax change that will reduce how much gamblers can deduct from their winnings, arguing the policy could disrupt the state’s gaming economy as soon as next year. The change was included in the One Big Beautiful Bill Act signed in July and takes effect in 2026, limiting deductions for gambling losses to 90 percent.
The new rule alters a long-standing tax framework that allowed gamblers to fully offset losses against winnings. Under the revised system, a player who wins and loses the same amount during the year could still owe taxes on income that never materialized. Industry representatives describe the result as a tax on phantom income that may discourage betting activity across Nevada.
Poker professional Erik Seidel said the rule threatens his future in the game. “Next year I am kind of forced into retirement,” he said. “Everyone who I’ve spoken to plans on either cutting back or stopping.” Under the change, gamblers who break even over a year could still owe taxes on income they did not actually earn.
Bipartisan Effort In Congress
Nevada Rep. Dina Titus has introduced the FAIR BET bill to restore the full deduction. She said the reaction from constituents has been overwhelming. “Turns out, we got a million responses to our tweet when we put it out there, more than I’ve ever gotten for anything,” she said, adding that casual bettors would feel the impact alongside professionals.
In the Senate, Catherine Cortez Masto and Jacky Rosen filed the bipartisan FULL HOUSE bill. A spokesperson for Cortez Masto said, “The Republicans’ tax on gamblers is ridiculous and will be bad for Nevada’s economy,” and noted efforts to attach the fix to upcoming appropriations legislation.
Republican Rep. Mark Amodei has also backed reversing the policy and said House leaders signaled progress. “We have been assured that when we wrap up this stuff in ’26 appropriations, that fix will be in there,” he said. Titus, however, remains skeptical. “We’re talking to all of them all the time, but you can’t trust those people. We’ll believe it when it’s signed.”
Industry Warns Of Early Economic Effects
Casino operators say uncertainty alone is already shaping customer behavior. Circa Casino Resorts CEO Derek Stevens said gamblers plan trips and budgets far in advance and are scaling back spending tied to 2026. He described a growing “sense of urgency” among operators. “This could be fixed next year. The reality is that it needs to be done now,” Stevens said. “It’s already impacting wagering that goes into 2026.”
Stevens said major betting events such as the Super Bowl and the NCAA basketball tournament could see reduced activity. He also raised concerns about slot players limiting wagers and customers in northern states choosing Canadian casinos or offshore betting platforms.
Despite widespread criticism, few lawmakers have publicly defended the provision. Amodei said, “Nobody has come out of the weeds and even claimed putting it in, so my unsolicited speculation is some staff member in the Senate got pissed about something and slipped it in there.” Titus suggested Republicans are reluctant to reopen the president’s signature legislation.
Source:
“‘It needs to be done now:’ Nevada casinos, lawmakers eager to reverse gambling deduction change“, thenevadaindependent.com, December 2025
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