LAS VEGAS (FOX5) — There are growing calls by gamblers, resorts and casinos and Southern Nevada lawmakers for Congress to change tax laws before January 1, 2026.
Gaming leaders warn that the provisions in the Big Beautiful Bill could be devastating to Las Vegas, the gaming industry and the state’s economy. Critics argue, new taxation codes in the BBB will ultimately force gamblers to pay taxes on money lost.
Currently, gamblers can deduct 100% of their losses against their winnings.
In the below example, if a player loses $100,000 and then wins $100,000 in a “wash,” the player can claim 100% of their losses and owe nothing to the IRS.
However, the Big Beautiful Bill decreases the loss deduction to 90%.
In the same scenario, if a player loses $100,000 and then wins $100,000, the player can only deduct 90% of their losses, or $90,000; the remaining $10,000 of losses becomes subject to federal taxes.
Congresswoman Dina Titus posted the following statement on X:
This summer, FOX5 spoke to Derek Stevens, the owner of Circa Resort & Casino. He explained the looming ripple effect on Nevada’s primary industry and countless hospitality jobs.
Today, the Nevada Resort Association shared the following statement:
“The deduction of gaming losses against wins has been in the IRS code for decades. This treatment of taxation on the net proceeds of gaming wins and losses is a matter of fairness. Passage of the FAIR BET Act will allow taxpayers who itemize to only be taxed on their net gains so that those who are in a losing position are not being taxed on income they have not received. We urge Congress to move expeditiously.”
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