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Nevada’s congressional delegation and casino industry leaders are urging Congress to reverse a federal tax change set to take effect in 2026 that limits how much gamblers can deduct in losses.
The change was included in the One Big Beautiful Bill Act signed by President Donald Trump in July 2025. It reduces the allowable deduction for gambling losses from 100% to 90%.
Lawmakers and industry groups warn the rule would force gamblers to pay taxes on money they did not actually earn. They say the policy could lead to reduced wagering, fewer tourists and job losses in Nevada, where casinos and tourism are key economic drivers. Members of both parties have expressed interest in reversing the provision as the deadline approaches.
What changed — and the push to reverse it
For decades, federal tax law allowed gamblers to deduct losses up to the amount of their gambling winnings, meaning players paid taxes only on net gains. That changed with the passage of the One Big Beautiful Bill Act.
Under the new law, gamblers may deduct only 90% of their losses. As a result, players who break even over the course of a year still owe taxes — a scenario Nevada lawmakers and industry leaders describe as “phantom income.”
Rep. Dina Titus, D-Nev., introduced the FAIR BET Act to restore full deductions for gambling losses. Titus says public response has been unusually broad, noting the policy affects casual bettors and slot players in addition to professional gamblers.
In the Senate, Sens. Catherine Cortez Masto and Jacky Rosen, both Democrats, are leading a bipartisan effort through the FULL HOUSE Act. Cortez Masto’s office says the provision could harm Nevada’s economy and cost jobs. Lawmakers also note the language was added late in the tax bill process.
Republican lawmakers seek bipartisan solution
Rep. Mark Amodei, R-Nev., has also been working to reverse the change. He says he has collaborated with lawmakers from both parties in search of a solution.
Amodei says House leaders have indicated the issue could be addressed through the 2026 appropriations process. He has also discussed the matter with House Ways and Means Committee Chair Jason Smith, who has said there is a bipartisan path to restoring full deductions.
No firm timeline has been established, leaving gamblers and casino operators uncertain.
Casinos and gamblers warn 2026 tax could hurt economy
Professional gamblers and casino executives say the tax change could have immediate consequences.
Poker Hall of Famer Erik Seidel says the new rules have forced him to reconsider his future in the game, warning that continued play may no longer be viable. He says fewer players are likely to enter tournaments once the rule takes effect, potentially leading to fewer events and job losses for dealers and support staff.
Other professional gamblers share those concerns, with many saying they may reduce play or move their action outside the United States.
Casino executives say the effects are already being felt. Circa Resort & Casino CEO Derek Stevens says many gamblers with long-term travel plans are cutting back on future spending.
He warns the change could reduce wagering during major events such as the Super Bowl and the NCAA men’s basketball tournament in March. Stevens also says some slot players may wager less because of the added tax burden.
Industry officials fear the impact could extend to hotels, restaurants and tourism-related jobs. They also worry gamblers may shift play to offshore websites or Canadian casinos.
Late Senate language and procedural hurdles delay reversal
Many lawmakers say they are frustrated by the lack of public support for the gambling tax provision. Few members of Congress have claimed responsibility for adding it, and it is reported to have been inserted late during Senate negotiations.
That timing made it difficult to challenge before the bill passed. Some lawmakers are also reluctant to reopen the president’s signature tax legislation. Despite broad bipartisan support for repeal, procedural hurdles and budget rules have slowed progress.
Futre uncertain as 2026 gambling deduction limit takes effect
The new deduction limit took effect Jan. 1, 2026, and applies to gambling wins and losses earned that year. Industry leaders say economic effects could occur sooner as gamblers adjust travel plans and spending habits.
Lawmakers, casino operators and trade groups continue lobbying Congress for a fix. It remains unclear whether action will occur before the rule takes effect, leaving players and businesses uncertain.
