One Big Beautiful Bill Delivers Mixed Results for Gaming

Las Vegas casino giants like MGM Resorts and Caesars Entertainment could see a financial boost worth hundreds of millions due to recent tax reforms under the One Big Beautiful Bill (OBBB). While the law has sparked alarm in parts of the gambling world, operators say the bill works in their favor—at least for now.

Good to know

• MGM and Caesars expect $100 million or more in tax savings.
• The new 90% deduction cap has drawn criticism from gamblers.
• Lawmakers from both parties are trying to restore the full deduction.

Executives at MGM and Caesars shared this week that changes under the OBBB will significantly lower their tax burdens. Caesars CEO Tom Reeg projected $80 to $100 million less in cash taxes, helping offset slower-than-expected earnings. MGM CFO Jonathan Halkyard added that the company’s tax forecast flipped from a $100 million liability to a $100 million refund.

But while casino corporations welcome the savings, the bill’s new gambling loss deduction limit—from 100% to 90%—has upset many gamblers. Starting in 2026, players who itemize will no longer be able to fully offset their winnings with losses. Professional gamblers, especially poker players and sports bettors, have voiced concerns that the rule change could push them out of the legal industry.

The American Gaming Association supported several elements of the bill, including the elimination of taxes on tips for casino workers and raising the slot win reporting threshold from $1,200 to $2,000.

Despite the benefits for operators, attention continues to focus on the 90% cap. MGM CEO Bill Hornbuckle acknowledged the impact on VIP and pro players, saying it’s something the industry is watching closely.

Efforts to reverse the deduction limit are already underway. Rep. Dina Titus (D-NV) introduced legislation to restore the full 100% deduction, gaining bipartisan backing. A similar bill was filed by Rep. Andy Barr (R-KY), and casino leaders have personally met with lawmakers, including House Ways and Means Chair Rep. Jason Smith.

Still, no guarantees exist. An early push for Senate approval was blocked by Sen. Todd Young (R-IN), and Congress won’t return until September, leaving limited time before the change takes effect in January.

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