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Nevada casino executives, poker players and lawmakers are pressing Congress to reverse a federal tax change that will reduce the portion of gambling losses Americans can deduct from winnings beginning next year. Supporters say the change, enacted through a law signed by President Donald Trump in July, will force some gamblers to pay taxes even when they end up losing as much as they win. Nevada lawmakers have been trying to restore full deductibility since the change passed, and they argue the legislative fix needs to land early enough to affect planning decisions for 2026.
The tax change stems from the shift that, under the prior rules, allowed players to deduct 100% of gambling losses from their winnings for tax purposes. Starting in 2026, the deduction is set at 90% of losses, meaning that a player who wins $100,000 and loses $100,000 would be able to deduct only $90,000 from their winnings and still owe taxes on $10,000 of what supporters describe as phantom income.
On the Nevada House side, Rep. Dina Titus has led the effort through her FAIR BET bill, a measure intended to restore the earlier treatment. Titus told The Nevada Independent that her push drew broad attention after she released it on social media, saying it brought “a million responses” to her tweet “when we put it out there.” She added that the impact is not limited to well-known poker pros, but also includes “regular guys who bet on weekend football,” according to her account of who the change is affecting.
In the Senate, Cortez Masto and Rosen have introduced the FULL HOUSE bill to accomplish the same goal as Titus’ proposal. Lea Hohenlohe, a spokesperson for Cortez Masto, wrote to The Nevada Independent that “The Republicans’ tax on gamblers is ridiculous and will be bad for Nevada’s economy,” adding that the senator is trying to get the FULL HOUSE bill included in the appropriations package Congress aims to pass in January.
Titus and fellow lawmakers have also looked to the House for movement, including U.S. Rep. Mark Amodei, Nevada’s lone Republican in Congress. Amodei, who chairs an appropriations subcommittee, said he has been working alongside Titus to restore the gambling loss deduction and told The Nevada Independent that “We have been assured” the fix will be included as Congress wraps up 2026 appropriations. Amodei said he has talked with House Ways and Means Committee Chair Jason Smith, and said Smith promised to reverse the tax change by the end of the year after discussions with gaming CEOs in Las Vegas.
Smith later provided an optimistic statement to The Nevada Independent, saying, “I believe there is a bipartisan path forward to restoring full deductibility of gambling losses,” though he did not give a specific timeline. Titus said she has been speaking with lawmakers frequently but expressed skepticism about GOP assurances, telling The Nevada Independent, “We’ll believe it when it’s signed,” and adding that “he’s on the committee, he ought to be helping us,” as she urged follow-through.
Gaming and industry leaders say the clock is already running because the lower deduction applies to 2026 wins and losses and takes effect on Jan. 1. Erik Seidel, a poker player and longtime Las Vegas resident, said he expects the change could alter participation in tournaments as gamblers respond to the tax implications. Seidel told The Nevada Independent that “Next year I am kind of forced into retirement,” adding that “Everyone who I’ve spoken to plans on either cutting back or stopping,” and he linked that to expectations for January events.
American Gaming Association CEO Bill Miller said he believes the deduction will be restored to 100% sometime early in 2026. During a Dec. 12 appearance on the Business of Betting podcast, Miller said he had not met a member of Congress who opposed reversing the change, describing the question as “What are the vehicles to fix this?” Miller said he believes lawmakers can “get it done,” and he said he was in Las Vegas in early December meeting with resort industry leaders about the legislative effort.
Other casino executives said wagering decisions are being shaped by the prospect of lower deductibility, potentially affecting both gaming operations and sports-betting markets. Circa Casino Resorts CEO Derek Stevens, who operates downtown Las Vegas properties and a sports betting business, said the policy is already hurting companies because “Gamblers, he said, plan their trips far in advance” and are “already cutting back on their 2026 budgets because of the potential tax implications.” Stevens said a “sense of urgency” exists within the industry and argued, “This could be fixed next year. The reality is that it needs to be done now,” adding that it is already “impacting wagering that goes into 2026.”
Stevens also said the tax implications could affect betting on major events such as the Super Bowl and the March Madness NCAA Basketball Tournament, and he described additional concerns about slot players reducing wagering. He told The Nevada Independent that he explained the situation to Jason Smith earlier this month in Las Vegas during a meeting arranged by MGM Resorts International CEO Bill Hornbuckle, and he said executives at Caesars Entertainment and Wynn Resorts also attended.
Lawmakers and industry figures have pointed to uncertainty about why the change was included and why it has received limited public defense since it became law. Amodei suggested that the provision may have slipped into the bill in a late-stage process, and The Nevada Independent reported that the Finance Committee chairman, Sen. Mike Crapo, was responsible for placing the deduction change into the measure in the Senate version; Crapo’s office did not respond to a request for comment. Titus said Republicans are reluctant to open up what she referred to as President Donald Trump’s major law and suggested they want to avoid challenging the president, while also saying her bill’s status matters less if Congress ultimately reaches a fix.
In comments reported this month, Trump appeared to entertain the idea of eliminating taxes on gambling winnings, but the White House press office did not respond to a request for comment about any plans. Titus said that when the president answered questions, it was likely tied to her bill and that the chances of it passing are “zero,” adding that Trump is not familiar with congressional details. Seidel, however, argued that the United States is an outlier because many other countries do not tax gambling winnings, and he said such a change would allow top American players to compete in tournaments without a disadvantage.