Gambling Tax: Will President Trump’s “One Big Beautiful Bill” Kill Vegas’s Golden Goose?
The House Ways and Means Committee is preparing for a crucial discussion this Friday in Las Vegas, focusing on the seismic impact of President Trump’s “One Big Beautiful Bill” on the gambling industry. Lawmakers and key figures from the casino world are expected to weigh in on the potential consequences of proposed tax code changes, which could make life harder for poker players, casino workers, and the entire gaming community.
Also Read: How Trump’s Executive Order Could Affect Foreign Players at the 2025 WSOP?
Gambling Tax Changes That Could Shake the Casino World
Under the new provisions of the bill, gamblers would no longer be able to deduct the full amount of their losses. Previously, they could write off 100% of their losses, a crucial feature for poker players and other casino-goers. Now, the new rule would allow gamblers to write off only 90% of their losses, meaning they would still pay taxes on the money they didn’t actually win.
For example, take a poker player who wins a tournament for $100,000 but loses that same amount throughout the year. In the old system, this player could write off their $100,000 loss. Under the new tax plan, however, they would pay taxes on $10,000 – essentially, money they didn’t earn. This change is likely to affect high-volume tournament players and online poker aficionados, many of whom are already worried about staying afloat under the new system.
“The tax code is already punitive to poker players,” said Nate Silver, a poker player and founder of the FiveThirtyEight political polling site. He went on to note, “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 this bill would make it considerably worse.”
A Vital Issue for Nevada’s Economy
For Nevada, where Gambling Tax and casinos play a pivotal role in the economy, these changes have far-reaching implications. The potential for harm isn’t confined to poker players alone. Casino workers, drivers, and other employees whose livelihoods depend on the thriving gaming industry are voicing their concerns about the economic impact of these new tax rules.
Senate Majority Leader Nicole Cannizaro of Nevada and business owner Yadusha Jones are set to testify at the hearing, shedding light on how these changes could affect not just casino professionals but also the broader state economy. The testimony will give the public a platform to understand the economic ripples of these changes.
The Pushback: FAIR Bet Act and Bipartisan Support
There has been pushback against these changes, with Nevada Rep. Dina Titus pushing for her FAIR Bet Act (Fair Accounting for Income Realized from Betting Earnings Taxation Act) to counter the tax modifications. The bill has garnered some bipartisan support, but it faces strong opposition, including objections from Sen. Todd Young. The bill has yet to receive a hearing in Congress, leaving lawmakers and industry players anxiously awaiting the fate of their future.
The Final Word: Where Will the Chips Fall?
As lawmakers gather to discuss the issue, it’s clear that the changes to gambling taxes could have a lasting impact on the industry, particularly in Nevada. The new tax proposal has sparked significant debate and concerns, but it remains to be seen whether the Senate will back the plan or whether efforts like the FAIR Bet Act will manage to make headway in Congress.
This Friday’s hearing will offer a pivotal opportunity for voices from across the gambling industry to speak out. The question is: will lawmakers listen, or will these changes prove too powerful to stop?
FAQs:
1. What are the new tax changes for gamblers?
The new tax changes under the “One Big Beautiful Bill” propose limiting the deduction of losses to 90%, meaning players will have to pay taxes on losses they can no longer write off, even if they broke even during the year.
2. How will this impact poker players?
Poker players, especially those involved in high-volume tournaments, may face significant tax burdens. They would be taxed on money they didn’t win, which could hurt their financial stability and profitability.
3. Why is Nevada concerned about these tax changes?
Nevada’s economy heavily relies on the gaming and casino industries. These tax changes could negatively affect both workers in the industry and the state’s overall economic well-being.
4. What is the FAIR Bet Act?
The FAIR Bet Act is a bill proposed by Rep. Dina Titus to nullify the negative effects of the new tax code, allowing players to once again deduct their full losses, as was previously allowed.
5. Will the FAIR Bet Act pass?
While the FAIR Bet Act has gained some bipartisan support, it has yet to reach a hearing in Congress and faces opposition, particularly from Sen. Todd Young, making its passage uncertain.
Content Courtesy: CARDPLAYER
Image Courtesy: History.com
