Nevada pushes to overturn federal gambling tax change

Nevada lawmakers and casino operators are intensifying efforts to overturn a federal tax change that limits how much gambling losses players can deduct from their winnings. The rule, passed under the One Big Beautiful Bill Act signed in July, reduces allowable deductions to 90 percent starting with the 2026 tax year, ending a long-standing policy that allowed losses to fully offset winnings.

Under the revised framework, gamblers who break even over a year could still face a tax bill on income they did not actually earn. The change has triggered concern across Nevada’s gaming ecosystem, from professional poker players to casual sports bettors, and prompted rare bipartisan cooperation from the state’s congressional delegation.

House Democrats from Nevada have introduced the FAIR BET bill, while the bipartisan FULL HOUSE bill has been advanced in the Senate. Both proposals aim to restore the 100 percent deduction before the rule takes effect. Nevada’s lone Republican member of Congress has also expressed support for reversing the change and is pushing for a fix through the appropriations process.

Despite broad agreement among lawmakers and industry stakeholders, no confirmed timeline for a legislative solution has emerged. Industry leaders believe a correction could pass in early 2026, but acknowledge that uncertainty will persist until Congress acts.

Casino executives report that some customers are already factoring the change into travel and wagering plans, particularly around major events such as the Super Bowl and NCAA March Madness. Concerns also extend to slot players and to the risk of gambling spend shifting offshore.

The debate comes amid broader regulatory efforts in Nevada to maintain market resilience and competitiveness, with industry leaders arguing that additional tax friction runs counter to those goals.