Nevada casinos, lawmakers seek to restore full deduction of gambling losses
Nevada lawmakers and casino industry leaders are working to reverse a federal tax change that will limit gamblers’ ability to deduct losses beginning in 2026, arguing the policy could reduce wagering and ripple through jobs and tourism in the state. The tax law, enacted through legislation signed by President Donald Trump in July, reduced the deduction rate for gambling losses from 100% to 90% for tax purposes. That change, opponents say, will leave players paying taxes on amounts they did not actually realize as net income, depending on their wins and losses.
The shift matters to players because, under the new rules, a gambler who wins $100,000 and loses $100,000 will be able to deduct only $90,000 of losses from winnings, leaving $10,000 subject to tax. One of the best-known voices in the effort, poker Hall of Famer Erik Seidel, described the impact in terms of personal career planning. “Next year I am kind of forced into retirement,” Seidel told The Nevada Independent, adding that others he has spoken with are also planning to cut back or stop.
Nevada’s legislative delegation has been seeking a fix since the change passed, and lawmakers say they have set their sights on early 2026 action. On the House side, Rep. Dina Titus, D-Nevada, has led the effort to restore the 100% loss deduction through her FAIR BET bill, saying the proposal drew major attention soon after it was introduced. “Turns out, we got a million responses to our tweet when we put it out there, more than I’ve ever gotten for anything,” Titus told The Indy, describing the breadth of concern that goes beyond high-rolling poker players.
In the Senate, Sens. Catherine Cortez Masto and Jacky Rosen, both Democrats from Nevada, introduced the bipartisan FULL HOUSE bill, with a stated goal of restoring deductibility to the prior level. Cortez Masto spokesperson Lea Hohenlohe said in a statement to The Nevada Independent that the senator called the change “the Republicans’ tax on gamblers” and said it would be “bad for Nevada’s economy,” adding that Cortez Masto is seeking to include the bill in the appropriations package Congress aims to pass in January.
Titus and other Nevada officials have pointed to the role of U.S. Rep. Mark Amodei, the state’s sole Republican in Congress, as they press for a legislative vehicle to correct the policy. Amodei, who chairs an appropriations subcommittee, told The Indy he has been working alongside Titus and said he had been assured that lawmakers would restore full deductibility as Congress prepares 2026 appropriations. “We have been assured that when we wrap up this stuff in ’26 appropriations, that fix will be in there,” Amodei said.
Amodei also described discussing the issue with House Ways and Means Committee Chair Jason Smith, R-Missouri, after gaming CEOs met with Smith in Las Vegas this summer. Amodei told The Indy that Smith had pledged to reverse the tax change by the end of the year, and Amodei later followed up in person. Afterward, Smith provided an optimistic statement to The Indy saying, “I believe there is a bipartisan path forward to restoring full deductibility of gambling losses,” though the statement did not give a specific timeline for when the fix would occur.
Titus, for her part, questioned whether Republican assurances are reliable. “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,” Titus told The Indy, saying she hopes Amodei uses his position to help Nevada. She said Amodei has not yet been helpful in her view, adding: “Well, not yet. But he hasn’t tried to hurt us, let’s put it that way.”
Industry leaders who met with congressional contacts in recent weeks said they believe the change can still be reversed, but that the uncertainty is already affecting gambling behavior. American Gaming Association CEO Bill Miller said he believes the deduction will be restored to 100% sometime early in 2026, telling The Business of Betting podcast in a Dec. 12 appearance that he does not believe there is opposition among members of Congress and that the key issue is how to make the change through the legislative process.
Miller said he expects congressional leaders will need the right “vehicles to fix this,” and he described his own discussions as part of the effort underway in Las Vegas. Another gaming executive, Circa Casino Resorts CEO Derek Stevens, said the industry is already being hurt by the legislation and that gamblers are planning trips far in advance and cutting back on 2026 budgets because of the tax implications. Stevens, whom Titus called the effort’s “champion,” said, “This could be fixed next year. The reality is that it needs to be done now,” adding that “It’s already impacting wagering that goes into 2026.”
Stevens said that the tax implications could slow betting on major sporting events such as the Super Bowl and March Madness. He also discussed how some slot players may curb wagering because of the lower tax deduction rate and said he was concerned that some American casino customers might seek alternatives by traveling to Canadian casinos or using offshore betting options to avoid the tax hit. He told The Indy he raised those concerns directly with Smith earlier this month in Las Vegas during a meeting that included executives from MGM Resorts International, Caesars Entertainment and Wynn Resorts.
Nevada officials also highlighted why the deduction change has remained intact so far, pointing to how few lawmakers have publicly defended the policy since it became law. Amodei offered an explanation centered on how the provision appeared late in the Senate version, saying, “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.” Amodei’s speculation referred to prior reporting that linked the provision to Sen. Mike Crapo, R-Idaho, but Crapo’s office did not respond to a request for comment.
Amodei and Titus also suggested Republicans may be reluctant to reopen the broader “One Big Beautiful Bill” signed by Trump in July. Titus said Republicans are hesitant to challenge the president’s signature policy, and she argued that opening up that package could force other lawmakers to pursue additional changes. Titus said: “They are reluctant to open up the Big Bad Beautiful Bill because they don’t want to challenge the president,” and she added that the chances for Nevada’s bill depend on the timing and the willingness of leaders to include her proposal.
When asked about scrapping taxes on gambling, Trump said in comments reported this month that he was unsure and that he would have to consider the idea. The White House press office did not respond to a request for comment about any plans to eliminate gambling taxes, and Amodei said Trump did not contact congressional offices to discuss the issue directly. Titus said she expects gamblers should not rely on the president’s comments, saying lawmakers likely need to pass legislation rather than wait for a change prompted by talk from the White House.
To Seidel, the policy change is not only economically disruptive but also logically difficult to justify. He compared it to how other countries treat gambling winnings and said the rule could affect who participates, noting that many top tournament performers are American. “If you look at the top performers, most of them are from the U.S., and that’s just going to go away,” Seidel said. “There’s no real benefit to anybody in this tax,” he added, describing the situation as one where “politics can be irrational sometimes.” Seidel said Titus reached out to discuss the law and that he and Titus are scheduled to meet at the beginning of 2026.
This story was originally published by The Nevada Independent and distributed through a partnership with The Associated Press.