Casino Funding Influences Lawmakers Advocating Gambling Tax Relief
Congressional Support for Restoring Full Gambling Loss Deductions
Recent analysis of federal fundraising data reveals that certain members of Congress receiving substantial contributions from the gambling sector are actively promoting legislation favored by casinos. Notably, four representatives from Nevada—Susie Lee, Steven Horsford, Mark Amodei, and Dina Titus—are campaigning to restore the full tax deduction for gambling losses, a benefit recently limited to 90% of losses by new tax rules. The gambling industry argues that this cap disadvantages players unfairly.
Significant Campaign Contributions from Gambling Interests
Campaign finance records indicate these Nevada lawmakers have collectively accepted hundreds of thousands of dollars from casino operators, industry leaders, and affiliated political action committees in recent election cycles. Susie Lee leads with about $400,000 in gambling-related donations since 2020, followed by Mark Amodei with over $300,000. Steven Horsford and Dina Titus have also garnered substantial support, with contributions nearing $300,000 and $200,000, respectively, according to reporting.
Major casino corporations, including MGM Resorts, Caesars Entertainment, and Wynn Resorts, are prominent contributors. Executives and related PACs from these companies engaged late last year with members of the American Gaming Association, the industry’s principal lobbying organization, to rally endorsement for reinstating the full deduction.
The Industry’s Argument: Taxing Nonexistent Profits is Unfair to Gamblers
The American Gaming Association and casino executives contend that limiting the deduction results in gamblers being taxed on income they never truly earned. Under current provisions, an individual who breaks even over the course of gambling might still incur a tax liability on some of their winnings, potentially suffering financial loss despite not having net gains.
Lawmakers Advocate the Change as a Fairness Correction for Players
Dina Titus has framed the effort as a matter of tax fairness, emphasizing that individuals should pay taxes exclusively on actual profits rather than phantom earnings created by tax code nuances. Industry supporters echo this, noting that allowing full deduction of gambling losses was standard practice before the recent amendment.
While Nevada lawmakers have been particularly vocal in their support, the proposal enjoys bipartisan backing in various states, including from some representatives without significant gambling-related campaign contributions.
Commitment to Nevada’s Economic Interests
Susie Lee’s office maintains that the previous reduction in deductions was an inadvertent outcome of hastily passed legislation. They highlight how vital the gaming industry is to Nevada’s economy, providing extensive employment opportunities and generating considerable economic activity. Lee’s spokesperson argues that correcting this tax regulation would benefit both the workforce and local businesses.
Diverse Gambling-Related Donors Beyond Major Casinos
Beyond the large casino companies, other contributors connected to the gambling scene include Native American tribes operating gaming facilities, manufacturers of casino equipment, and independent gaming venues, all supporting this legislative push.
