Las Vegas Casinos Demand Urgent Reversal of Gambling Tax Changes

Concerns Over New Federal Tax Law Among Las Vegas Casinos

Casino operators in Las Vegas are raising alarms about an impending change in federal tax legislation that could negatively impact gamblers’ finances, reduce high-stakes betting, and damage Nevada’s tourism-reliant economy. With January 1, 2026, fast approaching, casino executives, professional gamblers, and state officials are united in urging Congress to restore a long-established tax deduction that permits players to offset gambling losses directly against their winnings.

Impact on High-Volume Gamblers

The controversy centers on a provision embedded within the “Big Beautiful Bill” which reduces the deductibility of gambling losses from 100% to 90%. Although it appears as a slight adjustment, its effects on casinos—where bets can soar into the hundreds of thousands—are substantial. Under the new rule, players might owe taxes on amounts of money they never actually retained.

For example, if a gambler loses $100,000 but wins back the same amount, they currently pay no tax because losses fully offset gains. The revision, however, allows only $90,000 of losses to be deducted, meaning $10,000 would be taxed as if it were profit. This change is particularly concerning for high-stakes gamblers and casino operators who fear it will deter top-tier patrons.

The Nevada Resort Association emphasizes that the deduction is a matter of fairness, reflecting long-standing federal practice to tax net gains rather than gross fluctuations. They argue taxing gambling income differently penalizes players for the inherent volatility of betting.

Potential Economic and Industry Setbacks

Congresswoman Dina Titus from Nevada has been a key advocate for repealing these tax changes. Earlier this year, she introduced the FAIR BET Act and has been actively pushing the House Ways and Means Committee to expedite its consideration. However, despite wide bipartisan support, the bill has encountered obstacles, casting doubt on its eventual passage.

According to Congresswoman Titus, the tax change unfairly burdens all gamblers and could drive them toward offshore and unregulated betting markets.

Casino leaders echo the urgency, with Derek Stevens, owner of Circa and two other downtown casinos, reporting a decline in bookings. High-limit sports bettors are reportedly reluctant to place wagers on major 2026 events due to uncertainties over the tax implications.

Stevens warns that no one wants to pay taxes on so-called “phantom income,” and this change will affect casual and leisure players who win jackpots as well.

Professional poker players have also voiced strong concerns, stating that the new tax regulations may make it nearly impossible to operate legally within the United States. Leading casino giants like MGM Resorts International, Nevada’s largest employer, share these views, arguing that the law change would negatively impact visitors, employees, and the wider economy.