New Budget Bill Caps Gambling Loss Deductions at 90 Percent

The Senate just passed what President Donald Trump proudly calls the “One Big Beautiful Bill,” a sweeping federal budget package packed with major changes—including a new tax rule that is not sitting well with the gaming industry. One part of the bill limits how much gamblers can deduct in losses, and now Representative Dina Titus (D-Nev.) is preparing to fight back.

Good to know

• The bill passed the Senate 51-50 with Vice President JD Vance casting the tie-breaking vote.
• Gamblers would only be able to deduct 90% of losses instead of 100%.
• Titus says she will introduce an amendment or standalone bill to remove the cap.

The new provision caps gambling loss deductions at 90% of winnings, a shift from the current rule that allows 100%. That means if someone wins $100,000 and loses $100,000, they could still be taxed on $10,000 in net winnings. Professional gamblers say this change could push players toward offshore markets that do not follow U.S. tax rules or offer the same consumer protections.

Titus, whose district includes Las Vegas, says the move unfairly targets her constituents and the broader gaming industry. “Buried within the BS Republican Budget bill is a provision that harms poker players and those who gamble by limiting loss deductions,” she posted on X. “I’m working on a legislative fix that fairly treats gaming losses in the tax code.”

She told the Las Vegas Review-Journal that she will attempt to remove the provision through an amendment when the House takes up the budget. If that fails, she plans to introduce separate legislation to undo it. “If Republicans are unwilling to accept this amendment, I will pursue stand-alone legislation to fix this bad policy,” she said.

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.” She argued that it would hurt people who try to stay compliant with tax laws and may instead push some toward “offshore outlets and the prediction markets,” which she noted do not invest in communities, hire union workers, or support responsible gambling initiatives.

Derek Stevens, who owns Circa, The D, and Golden Gate casinos, backed Titus publicly by reposting her message. Stevens had hosted Trump at Circa during a recent campaign stop in Las Vegas where the former president spoke in favor of removing federal taxes for tipped employees.

Critics also point out that the cap affects more than just losses—it applies to business-related expenses like data services and subscriptions, which many pro gamblers rely on. The American Gaming Association estimates that the U.S. gaming industry supported 1.8 million jobs and added $328.6 billion to the economy in 2023 alone. They argue that changes like this could do more harm than good.

Even though supporters of the cap see it as a mild “sin tax” aimed at reducing the growing federal deficit—projected to rise by up to $3 trillion under the Senate bill—industry advocates believe the fallout could outweigh any financial benefit.

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