Nevada Rep. Titus pledges to strike gambling tax provision from US Senate budget bill

U.S. Representative Dina Titus (D-Nev.) said she will seek to remove a Senate-approved provision that limits tax deductions for gambling losses, calling the measure an attack on the gaming industry and vowing to introduce an amendment or standalone legislation to block it.

The provision, part of the Senate version of the federal budget bill dubbed the “One Big Beautiful Bill” by President Donald Trump, would cap gambling loss deductions at 90% of winnings, compared with the current 100%. Professional gamblers and casino operators warn that the move could reduce legal gaming activity and drive bettors to offshore markets.

“Buried within the BS Republican Budget bill is a provision that harms poker players and those who gamble by limiting loss deductions,” Titus posted on X. “I’m working on a legislative fix that fairly treats gaming losses in the tax code.”

The House version of the bill, which has yet to come to a floor vote, does not include the gambling-related tax change. Titus said she would move to introduce an amendment if given the opportunity, and would pursue separate legislation if the measure is not adopted.

“If Republicans are unwilling to accept this amendment, I will pursue stand-alone legislation to fix this bad policy,” she told the Las Vegas Review-Journal.

Titus also criticized the provision in a statement to Casino Reports, saying it would “screw over folks who live in and visit my district, the casino capital of the world, Las Vegas.”

“This also punishes people who are trying to do the right thing by reporting gambling on their taxes,” she said, adding that the measure could push users toward “offshore outlets and the prediction markets, which unlike legitimate gambling sources, do not invest in bricks and mortar, hire union labor, pay state taxes, or contribute to problem gaming efforts.”

Derek Stevens, co-owner of Circa, The D, and Golden Gate casinos in Las Vegas, echoed Titus’ criticism, reposting her message in support. Stevens hosted Trump at Circa earlier this year during the president’s campaign stop in Las Vegas, where he advocated to eliminate federal taxes for tipped employees.

Under the proposed change, a gambler who won $100,000 but also lost $100,000 would be taxed on $10,000 in net winnings. The Senate version would also apply the 90% cap to certain business expenses, such as data service subscriptions, which are essential for many professional gamblers.

The measure passed the Senate 51-50 on Tuesday, with Vice President JD Vance casting the tie-breaking vote after three Republicans broke ranks.

A spokesperson for Titus said the provision was “slipped into the Senate amendment” and represents “another example of gaming being treated unfairly, which impacts jobs and the economy in Las Vegas.”

With the Senate version of the OBBB set to potentially increase the federal debt by as much as $3 trillion, supporters of the provision may view it as a modest “sin tax” that could help reduce the federal deficit. 

But industry advocates argue the economic downside outweighs any short-term gain. The American Gaming Association estimated that in 2023, the U.S. gaming industry contributed $328.6 billion to the economy, supported 1.8 million jobs, and generated $53 billion in federal, state and local tax revenue.

The House must still vote on the budget package before it can be signed into law. President Trump has urged Congress to pass it before the July 4 holiday.