Las Vegas is facing a potential financial hit after President Donald Trump's spending bill introduced a new tax rule that impacts gamblers and the deductions they can take on their losses. The revised tax code now limits gamblers to deducting just 90% of their losses against their winnings, a shift from the previous 100% deduction allowed. This move has prompted Nevada Democratic Congresswoman Dina Titus to spearhead a fight to reverse the tax rules. According to a KTNV report, Titus is optimistic about amending the legislation and has vowed to repeal the measure with her proposed FAIR BET Act.
The potential impact of the tax change could be significant for both professional gamblers and the state of Nevada. If not repealed, experts at a town hall event led by Titus highlighted that gamblers might be driven to play elsewhere, including unregulated offshore casinos. This would not only reduce gambling tax revenue for Nevada but also all other taxes paid by visitors during their stay. In an effort to quickly address the situation, Titus aims to insert her bill's language into another legislative measure that must pass by the end of the year, as noted in a KTNV article. Her bill has garnered support from every member of Nevada's House delegation, along with bipartisan agreement on the issue. Representative Jason Smith, R-Mo., acknowledged at a Las Vegas field hearing that "members on both sides of the aisle have heard you," signaling an openness to work on a repealing the provision.
The significance of this tax change on professional gamblers was underscored during the town hall in Las Vegas. One panelist, Adam Robinson, from the American Bettor’s Voice, pointed out that a gambler could, "win $100,000, lose $100,000, and because of this provision, looks like you made $100 on your tax return, and you’re gonna get taxed on that," as mentioned on 8 News Now. Such tax implications could reshape the careers of professional gamblers who may be forced either to alter their way of living or to look for opportunities in locations where their losses could be fully deducted.
The economic implications for both individuals and the state have brought urgency to this issue. According to the Joint Committee on Taxation, this tax provision is expected to generate nearly $1.1 billion over the next decade. However, there's a concern that gamblers would shift to black markets where they could still fully deduct losses. Congresswoman Titus warned at the town hall that this could push many towards unlawful operations, which risks the health of the regulated gaming industry. Despite the urgency and rising concerns, an attempt by Nevada Democratic U.S. Sen. Catherine Cortez Masto to repeal the provision hit a procedural hiccup when another senator objected.
