Several casino executives met with House Ways and Means Committee Chair Rep. Jason Smith (R) last week. They shared their concerns about the upcoming tax change, which one study said will cause an $18 billion hit to annual sports betting handle.
The change takes effect on Jan. 1 and will only allow gamblers to deduct 90% of their losses. However, the current tax code allows bettors to deduct 100% of losses.
The casino leaders included:
- Derek Stevens: Owner and CEO of the Circa, Golden Gate, and The D casinos
- Bill Hornbuckle: MGM Resorts CEO
- Tom Reeg: CEO of Caesars Entertainment
- Craig Billings: Wynn Resorts CEO
- Bill Miller: President of American Gaming Association (AGA)
Stevens said his company has already seen several high-stakes sports bettors decline to book large futures wagers on major 2026 events like the Super Bowl and March Madness.
“It’s scary to think that we’re already being impacted by groups not booking because they’re afraid of dealing with this issue,” Stevens told the Las Vegas Review-Journal on Thursday. “This is clearly going to impact tourism here and throughout the country, and that’s why I’m trying to make a push.”
Law Could Also Impact Professional Poker Players
The change could affect the poker industry as well. Ten-time World Series of Poker bracelet winner Erick Seidel recently said the changes may force him into semi-retirement. He said high-end professional players would be impacted the most.
Thus far, bipartisan efforts to kill the provision have failed.
AGA Senior VP of Government Relations Chris Cylke said the trade organization “remains committed to working with Congress and the (presidential) administration to restore 100% deductibility, a longstanding policy ensuring fair and consistent tax treatment.”
Titus Letter Pushes FAIR Bet Act
After the bill was signed into law in July, Rep. Dina Titus, D-NV, began pushing her FAIR Bet Act (Fair Accounting for Income Realized from Betting Earnings Taxation) to address the issue.
Last week, Titus sent a letter to Smith and Rep. Richard Neal, the Democratic ranking member of the committee. She asked the committee to expedite a hearing on her bill.
“While the change may appear minor, it will have significant and harmful consequences,” Titus wrote in the letter. “It unfairly burdens professional gamblers and casual players alike and will inevitably drive players toward offshore and unregulated markets where consumer protections are non-existent, thereby undermining responsible gaming efforts nationwide.”
Titus asked the committee to consider her bill at the next available meeting.
Last week, in response to a reporter’s question, President Donald Trump said he would consider eliminating gambling taxes altogether. Those comments came after the meeting between the casino execs and Smith, but before it was public knowledge.
