Growing calls by gamblers, gaming industry to change tax laws before 2026

LAS VEGAS (FOX5) — There are growing calls by gamblers, resorts and casinos and Southern Nevada lawmakers for Congress to change tax laws before January 1, 2026.

Gaming leaders warn that the provisions in the Big Beautiful Bill could be devastating to Las Vegas, the gaming industry and the state’s economy. Critics argue, new taxation codes in the BBB will ultimately force gamblers to pay taxes on money lost.

Currently, gamblers can deduct 100% of their losses against their winnings.

In the below example, if a player loses $100,000 and then wins $100,000 in a “wash,” the player can claim 100% of their losses and owe nothing to the IRS.

However, the Big Beautiful Bill decreases the loss deduction to 90%.

In the same scenario, if a player loses $100,000 and then wins $100,000, the player can only deduct 90% of their losses, or $90,000; the remaining $10,000 of losses becomes subject to federal taxes.

Congresswoman Dina Titus posted the following statement on X:

This summer, FOX5 spoke to Derek Stevens, the owner of Circa Resort & Casino. He explained the looming ripple effect on Nevada’s primary industry and countless hospitality jobs.

Today, the Nevada Resort Association shared the following statement:

COULD PROFESSIONAL GAMBLERS LEAVE LAS VEGAS?

The World Series of Poker calls Las Vegas home, but numerous professional gamblers have concerns whether their careers-- at least in the U.S.-- can endure the new tax provisions. Host, commentator and Las Vegas local Tony Dunst shares insight.

“We’re all furious. We’re extremely upset and feel that essentially we’re being highlighted to try and extort more money out of us, when we already had a fair system in place and you’re making our profession near impossible,” Dunst tells FOX5.

“I‘ve been told by a number of my peers that they will essentially either retire from being a professional poker player or professional gambler or shift the majority of their volume and attention to offshore sites,” he said.

“I think many of them feel that, since I am being taxed unfairly, therefore, I’m just not going to pay taxes on this, and I don’t want to deal with the hassle,” Dunst said.

STEPS TO TAKE FOR YOUR TAXES

Enrolled agent Russell Fox with Clayton Financial and Tax specializes in taxes for gaming, and provides advice for both professional and recreational gamblers.

“I am fairly certain this law will be repealed one day. I don’t know if that day is 2025 or 2035. There’s a bunch of bad tax law on the books,” Fox said.

No matter what happens before 2026 or early next year, Fox has the following advice: “The best advice I can give today is to keep excellent records. Make sure that any possible netting can be done,” he said.

Though recreational gamblers often neglect “logs,” doing so will protect you during an audit or a hearing in court.

“The courts have no sympathy for gamblers who do not keep logs. Note the date, the casino name, the game you’re playing-- as simple as slots, the start and end time, and your result. A properly done contemporaneous gambling log will be used by courts,” Fox said.

Phone apps are available to help with your logs.

"The one thing we do suggest anyone who keeps a phone or uses a phone app is to email the results monthly to themselves. In general, the IRS doesn’t see that many gambling logs from gamblers. They’re probably going to accept it," he said.

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