Nevada Casinos, Lawmakers Eager to Reverse Change in Gambling Tax Deductions
Nevada casinos and lawmakers are pushing to reverse a federal tax change that will reduce gambling loss deductions, potentially impacting players and the state's economy.Summary
A recent federal tax change, enacted through the One Big Beautiful Bill Act, is causing concern among Nevada casinos, lawmakers, and professional gamblers like Erik Seidel. Previously, players could deduct 100% of gambling losses from their winnings, but starting in 2026, this will be reduced to 90%. This change effectively creates a tax on 'phantom income' and is expected to discourage gambling, impacting both professional players and recreational bettors. Nevada lawmakers, including Rep. Dina Titus and Sens. Catherine Cortez Masto and Jacky Rosen, are actively working to restore the 100% deduction through bills like the FAIR BET and FULL HOUSE acts. There is bipartisan support for the change, and even Nevada’s sole Republican representative, Mark Amodei, is collaborating on a fix. While assurances have been made that the issue will be addressed in the 2026 appropriations package, some lawmakers remain skeptical. The American Gaming Association also believes a resolution is likely. The change is already causing gamblers to reconsider their spending, potentially impacting tournaments and jobs within the gaming industry, and there are concerns that players may seek out casinos in other countries or illegal offshore betting sites to avoid the tax.
(Source：U.S. News & World Report)