Gambling Industry Influences Nevada Lawmakers to Advocate for Full Tax Deduction on Gambling Losses
Nevada Lawmakers Back Gambling Tax Deduction Reform
Four members of Congress from Nevada—Susie Lee, Steven Horsford, Mark Amodei, and Diana Titus—have been financially supported by the gambling sector. These lawmakers are championing legislation that would allow gamblers to fully deduct their losses from their taxable income, a policy long sought after by the gambling industry.
Financial Support from the Gambling Sector
A recent analysis of campaign finance records reveals that significant contributions from casinos and related businesses have helped these Congress members. Susie Lee has received nearly $400,000 in donations over the last four election cycles, while Mark Amodei and Steven Horsford have each received close to $300,000. Diana Titus has garnered about $200,000 in industry support.
The proposed legislation aims to reverse the current limit on gambling loss deductions, set at 90% under recent tax reforms. Industry leaders from companies such as MGM Resorts, Caesars Entertainment, and Wynn Resorts have worked closely with the American Gaming Association (AGA) to advocate for a return to a full 100% deduction.
Legislative Efforts to Restore Full Deductions
Diana Titus has been a vocal proponent of restoring the 100% deduction, highlighting that for many years, the tax code allowed gamblers to subtract all losses from their winnings. She argues this approach is only fair since taxes should be applied to actual earnings, not to so-called “phantom” or “ghost” income, where gamblers might appear to have taxable income despite breaking even.
The American Gaming Association’s Position
The AGA supports the lawmakers’ stance on this issue, emphasizing the unfairness of taxing phantom income. This situation occurs when a gambler has equal winnings and losses but is taxed on the difference due to the deduction cap. For example, if someone wins $10,000 but also loses $10,000, under current rules allowing only a 90% deduction, they end up paying taxes on $1,000 despite no net gain.
In a statement from July 2025, the AGA praised the House’s inclusion of a full deduction in its bill and critiqued the Senate’s decision to reduce it to 90%, describing the latter as an unjust precedent that penalizes a legal and regulated industry.
