A minor tax change buried in a sweeping federal invoice might have outsized penalties for the playing trade in Nevada, in accordance with consultants and lawmakers who spoke at a city corridor assembly Monday (August 11).
The so-called “One Big Beautiful Bill” included a provision capping the deduction of playing losses at 90% of winnings. Beforehand, gamblers might deduct 100% of losses, which means somebody who received after which misplaced the identical quantity would owe no federal taxes.
Occurring Now: Rep. Dina Titus is internet hosting a City Corridor on the FAIR BET Act to revive the 100% deduction for playing losses, joined by neighborhood leaders. and trade consultants. Dwell from Las Vegas Metropolis Corridor. #FAIRBETAct #LasVegas https://t.co/rqbcoxhKfP
— Dina Titus (@repdinatitus) August 12, 2025
Rep. Dina Titus, a Democrat from Nevada who opposed the invoice, stated the change impacts way over skilled poker gamers. “It’s a quite simple change, nevertheless it’s had quite a lot of influence. Not solely on gamers, however on the trade, on some forms of tourism, on income,” she stated on the occasion in Las Vegas Metropolis Corridor.
Titus famous that below the brand new rule, a gambler who wins $100,000 after which loses $100,000 would nonetheless owe $10,000 in taxes, regardless of having no revenue. Calling this a tax on “phantom cash,” she added, “I didn’t assume that was truthful.”
The congresswoman has launched the FAIR BET Act, quick for Fair Accounting for Income Realized from Betting Earnings Taxation Act, which might restore the complete deduction. She stated the invoice has bipartisan assist, together with from Texas Republican Rep. Troy Nehls, regardless that he backed the bigger bundle.
Federal estimates recommend the brand new restrict might increase $1.1 billion over 9 years. Titus questioned that projection, warning that it might drive gamblers towards offshore websites or unlawful markets. “Should you make folks pay taxes on faux cash, they’re not going to deduct it or report it, and even gamble,” she stated.
Nevada playing tax change might make ‘unregulated market develop’
Adam Robinson of the American Bettors’ Voice informed attendees the coverage might erode belief in regulated sports activities betting. “You could possibly win $100,000, lose $100,000, and due to this provision, seems to be such as you made $100 in your tax return, and also you’re gonna get taxed on that,” he stated.
“We’ll lose gamers, we’ll lose jobs, and most significantly, we’ll lose belief. The regulated market will shrink, the unregulated market will develop.”
Becky Harris, former state senator and chairwoman of the Nevada Gaming Management Board, argued the deduction ought to be handled like different monetary losses. “I feel the flexibility to deduct your playing losses isn’t any completely different than the flexibility to deduct your inventory losses,” she stated.
Harris warned that focusing on the playing trade whereas leaving different sectors untouched is “unhealthy coverage” and urged federal officers to seek the advice of state lawmakers.
Tax specialist Russell Fox predicted that casinos would really feel the results over time. Quoting economist Alan Greenspan, he stated, “No matter you tax, you get much less of.”
Titus expressed optimism about reversing the change earlier than it takes impact for subsequent 12 months’s taxes. “Now we have slightly time, however we don’t wish to drag round, we wish to get it executed,” she stated, including that she hopes to connect her invoice’s language to must-pass laws earlier than the top of the 12 months.
Featured picture: Dina Titus by way of X
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