Nevada Hoping To Convince Congress To Reverse Gambling Tax Deduction Cut
Nevada officials are lobbying the US government in an effort to reverse impending gambling taxes.
Under new federal rules, which came into effect on January 1 as part of President Donald Trump’s One Big Beautiful Bill Act (OBBBA), gamblers are only permitted to deduct 90% of losses from their gambling winnings.
Critics have argued that this will result in some individuals paying tax on money they haven’t earned, leaving them out of pocket.
Nevada’s Gambling Industry
Nevada relies heavily on the gambling industry. Directly, its casinos and gambling venues account for just over a third of the state’s total GDP.
That figure is much higher when taking into account hotels, services, and other expenditures generated by casino-loving visitors.
In 2025, Nevada was already struggling with reduced tourism rates.
Harry Reid International Airport reported a nearly 10% reduction in visitor numbers in November, marking the 10th consecutive month of declining numbers.
While the casinos themselves have adapted well, ensuring revenue still increased, there is a sense that Nevada’s gaming industry will eventually catch up with the decline in tourism.
With that in mind, and considering the state’s dependence on casino gambling, lawmakers and decision makers in Nevada have questioned the government’s deductible rate changes.
The One Big Beautiful Bill Act
The OBBBA was signed into law in July 2025, after just narrowly passing a Congress vote.
At the time, President Trump claimed it would unlock economic growth. Estimates from the Joint Committee on Taxation, touted by the Congressional Budget Office, claim that the changes to gambling tax laws would raise as much as $1 billion for the government.
Before the new rules, bettors were able to deduct 100% of losses from their gambling winnings and only pay tax on the remaining profit.
Looking For An Online Casino? Check Out Our Latest Reviews!
If a bettor won $100,000 but lost $100,000 in the same financial year, they wouldn’t pay any tax.
Under the reformed tax laws, only $90,000 of losses would be deductible against $100,000 of winnings, giving a “phantom income” of $10,000.
The same bettor would be liable to pay tax on $10,000, despite not collecting profits over the course of the year.
According to Nevada state officials and others within the industry, not only is this unfair to individuals, but it will have a knock-on effect on the industry as a whole.
While You Are Here, Why Not Check Out Our: Casino Games Hub & Free Slots?
Professional poker player Erik Siedel is one of several high-profile individuals to rail against the new rules.
Siedel stated that players will be less likely to enter tournaments, which will result in reduced revenue. It will also result in job losses in the industry and may lead to players taking seats at overseas tables.
Nevada’s Rep. Dina Titus has introduced the FAIR BET Act to repeal the changes, while the FULL HOUSE Act, which has bipartisan backing, has been submitted in the Senate, with the same goal.
