Federal lawmakers are gathering in Las Vegas Friday to discuss the gambling implications of President Trump’s “One Big Beautiful Bill.”
The House Ways and Means Committee is holding a hearing in Sin City to discuss the problems and possible solution. Poker players and others in the casino industry are reeling from the new tax implications.
Provisions in the bill revise the tax code that only allows gamblers to write off 90% of their losses. Previously, players could deduct the full amount of losses. The change would result in poker players and other gamblers paying taxes on money they didn’t actually win.
For example, if a poker player wins a tournament for $100,000 and then loses $100,000 throughout the rest of the year, the player broke even. However, in that instance, the player would pay taxes on $10,000.
The government would essentially put high-volume tournament players, like those that play online poker, out of business.
The meeting will include testimony from several witnesses and input from the public about the issue is also sought.
Hearing Studies Law’s Impact
Servers, drivers and others involved in casino-related trades will speak at the hearing. Additionally, Nevada state Senate majority leader Nicole Cannizaro and business owner Yadusha Jones are set to air their opinions.
Poker players became concerned about the bill earlier this month for obvious reasons. However, others are concerned it could be a a huge negative not just for poker, but the entire industry.
“Tax code is already punitive to poker players (you get taxed on winning years but can’t write off losing years unless you file as a pro; it’s easy to have a down year even as a good player) and the Senate-passed version of OBBBA would make it considerably worse,” poker player and founder of the FiveThirtyEight political polling site Nate Silver noted on Twitter/X.
The issue is also especially important in Nevada, where gaming and casinos play a crucial role in the state’s economy.
Efforts have been made to push Nevada Rep. Dina Titus’ FAIR Bet Act (Fair Accounting for Income Realized from Betting Earnings Taxation Act) through Congress to nullify that portion of the law. The bill has received some bipartisan support, but Sen. Todd Young objected to the plan and the bill has yet to reach a hearing in Congress.
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