Casinos Face Challenges from New Federal Gambling Tax

Tom Darby

LAS VEGAS, Nev. — Nevada’s poker professionals and casino operators are preparing for the impact of a new federal tax law that will take effect on Jan. 1, 2026, reducing the deductibility of gambling losses from 100% to 90 percent.

The change, enacted through the One Big Beautiful Bill Act, means that players who previously could fully offset their gambling losses against winnings will now owe taxes on 10 percent of those losses. For example, a player who breaks even financially would still pay taxes on $10,000 of “phantom income” for every $100,000 wagered.

Nevada lawmakers are actively seeking a fix. Rep. Dina Titus has introduced the FAIR BET bill to restore full deductibility, as Senators Catherine Cortez Masto and Jacky Rosen introduced the bipartisan FULL HOUSE bill with the same goal. Rep. Mark Amodei, Nevada’s sole Republican in Congress, is working with the House Ways and Means Committee to include a correction in the 2026 appropriations package.

American Gaming Association CEO Bill Miller hopes the deduction will see restoration early next year, although the timing remains uncertain.

Casino executives warn that the tax change is already affecting Nevada’s gaming economy. Derek Stevens, CEO of Circa Casino Resorts, says gamblers are cutting back on travel and wagering due to the potential tax impact, which could influence major events like the Super Bowl and March Madness.

The provision was added to the Senate version of the bill at the last minute, with Idaho Senator Mike Crapo linked to the insertion. Industry leaders warn that unless the law is corrected, Nevada could face economic and employment repercussions.

Lawmakers and industry groups continue to advocate for reversing the policy to protect Nevada’s gaming industry and its workforce.