A federal tax change set to take effect in 2026 will limit gamblers' ability to deduct losses from winnings, prompting Nevada's congressional delegation to push for a reversal. Poker professionals and casino operators warn of economic fallout, including job losses and reduced tourism. Bipartisan bills aim to restore full deductibility amid assurances of a fix early next year.
The One Big Beautiful Bill Act, signed by President Donald Trump in July, alters tax rules for gamblers by capping loss deductions at 90 percent of winnings starting January 1, 2026. Previously, players could deduct 100 percent of losses, but now a net-zero outcome—like winning and losing $100,000—would result in taxes on $10,000 of unrealized income.
Poker Hall of Famer Erik Seidel, a Las Vegas resident with 10 World Series of Poker bracelets and millions in earnings, said the change forces him toward retirement. “Next year I am kind of forced into retirement,” Seidel told The Nevada Independent. “Everyone who I’ve spoken to plans on either cutting back or stopping.” He anticipates fewer participants in January tournaments, leading to job losses for dealers and others.
Nevada's lawmakers are actively lobbying for reversal. Rep. Dina Titus (D-NV) introduced the FAIR BET bill to restore full deductions, noting overwhelming public support: “Turns out, we got a million responses to our tweet when we put it out there, more than I’ve ever gotten for anything.” Sens. Catherine Cortez Masto (D-NV) and Jacky Rosen (D-NV) sponsored the bipartisan FULL HOUSE bill, with a spokesperson for Cortez Masto stating, “The Republicans’ tax on gamblers is ridiculous and will be bad for Nevada’s economy.”
Rep. Mark Amodei (R-NV), who chairs an appropriations subcommittee, has coordinated with Titus and House Ways and Means Committee Chair Jason Smith (R-MO). Amodei reported assurances that the fix would appear in 2026 appropriations. Smith, after meeting Las Vegas gaming CEOs, affirmed, “I believe there is a bipartisan path forward to restoring full deductibility of gambling losses,” though without a firm timeline.
American Gaming Association CEO Bill Miller expressed confidence in an early 2026 resolution, emphasizing fairness: “There’s a fundamental fairness issue here. People shouldn’t pay taxes on phantom income.” Circa Resort & Casino CEO Derek Stevens highlighted immediate impacts, as gamblers adjust 2026 plans, potentially affecting events like the Super Bowl and March Madness. “This could be fixed next year. The reality is that it needs to be done now,” Stevens urged, warning of shifts to offshore betting or Canadian casinos.
The provision's origin remains unclear, with speculation it was added late by Senate staff. Titus noted Republican reluctance to amend Trump's bill, while Amodei dismissed defenses of the policy. Trump briefly mused on eliminating gambling taxes but offered no commitment.
