A minor tax change buried in a sweeping federal bill could have outsized consequences for the gambling industry in Nevada, according to experts and lawmakers who spoke at a town hall meeting Monday (August 11).
The so-called “One Big Beautiful Bill” included a provision capping the deduction of gambling losses at 90% of winnings. Previously, gamblers could deduct 100% of losses, meaning someone who won and then lost the same amount would owe no federal taxes.
Happening Now: Rep. Dina Titus is hosting a Town Hall on the FAIR BET Act to restore the 100% deduction for gambling losses, joined by community leaders. and industry experts. Live from Las Vegas City Hall. #FAIRBETAct #LasVegas https://t.co/rqbcoxhKfP
— Dina Titus (@repdinatitus) August 12, 2025
Rep. Dina Titus, a Democrat from Nevada who opposed the bill, said the change affects far more than professional poker players. “It’s a very simple change, but it’s had a great deal of impact. Not only on players, but on the industry, on some types of tourism, on revenue,” she said at the event in Las Vegas City Hall.
Titus noted that under the new rule, a gambler who wins $100,000 and then loses $100,000 would still owe $10,000 in taxes, despite having no profit. Calling this a tax on “phantom money,” she added, “I didn’t think that was fair.”
The congresswoman has introduced the FAIR BET Act, short for Fair Accounting for Income Realized from Betting Earnings Taxation Act, which would restore the full deduction. She said the bill has bipartisan support, including from Texas Republican Rep. Troy Nehls, even though he backed the larger package.
Federal estimates suggest the new limit could raise $1.1 billion over nine years. Titus questioned that projection, warning that it could drive gamblers toward offshore sites or illegal markets. “If you make people pay taxes on fake money, they’re not going to deduct it or report it, or even gamble,” she said.
Nevada gambling tax change could make ‘unregulated market grow’
Adam Robinson of the American Bettors’ Voice told attendees the policy could erode trust in regulated sports betting. “You could win $100,000, lose $100,000, and because of this provision, looks like you made $100 on your tax return, and you’re gonna get taxed on that,” he said.
“We’ll lose players, we’ll lose jobs, and most importantly, we’ll lose trust. The regulated market will shrink, the unregulated market will grow.”
Becky Harris, former state senator and chairwoman of the Nevada Gaming Control Board, argued the deduction should be treated like other financial losses. “I think the ability to deduct your gambling losses is no different than the ability to deduct your stock losses,” she said.
Harris warned that targeting the gambling industry while leaving other sectors untouched is “bad policy” and urged federal officials to consult state lawmakers.
Tax specialist Russell Fox predicted that casinos would feel the effects over time. Quoting economist Alan Greenspan, he said, “Whatever you tax, you get less of.”
Titus expressed optimism about reversing the change before it takes effect for next year’s taxes. “We have a little time, but we don’t want to drag around, we want to get it done,” she said, adding that she hopes to attach her bill’s language to must-pass legislation before the end of the year.
Featured image: Dina Titus via X
