A key figure in the GOP wants to reverse course on the gambling tax changes in the “One Big Beautiful bill.”
During a House Ways and Means Committee hearing in Las Vegas last Friday, Rep. Jason Smith promised to work to nullify the gambling tax implications in the bill.
Smith is the chairman of the committee. Thus, the Republican from Missouri’s opinion carries weight through the party.
President Donald Trump’s spending bill only allows gamblers to write off 90% of their losses. Previously, bettors could deduct 100% of losses. As a result, poker players could pay taxes on money they didn’t win.
For example, if a poker player wins $100,000 in a tournament, and then loses $100,000, the player would owe taxes on $10,000 even though he broke even.
Casino Operators Weigh In
Smith said he spoke with three casino CEOs on Thursday about the change in the bill. MGM Resorts CEO Bill Hornbuckle was one of those who met with Smith. Now, Smith favors reversing the change.
“They praised numerous provisions in the [tax] code, and they only raised one that they had issues with,” he said.
Smith also said he heard from casino operators in his home state. Missouri is home to 13 casinos and two are in his district. The congressman said he would work in a bipartisan effort to remove the tax change from the bill.
Nevada Rep. Dina Titus introduced FAIR BET Act (Fair Accounting for Income Realized from Betting Earnings Taxation) earlier in July and was a special guest of the panel. So far, the bill has received bipartisan support but has also received some pushback in the senate.
Titus was pleased to see Smith get on board in the effort to bring back the 100% loss deduction.
“I was very glad to hear the chairman say he will work with us to undo that reduction in deductions from gaming losses,” Titus said. “The Senate did put it in there, but it came back to the House, which wouldn’t accept any amendments, and [Republicans] voted for it. So let’s be sure we know who’s responsible, and let’s work together to fix it.”
In the House Ways and Means Committee meeting, Nevada Senate Majority Leader Nicole Cannizzaro echoed some of those sentiments and noted that the deduction changes “could have a chilling effect on high-volume and destination gambling, one of the core drivers of Nevada’s tourism economy.”
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