Nevada Lawmakers Press Gambling Loss Deduction Change
A group of Nevada members of Congress is pushing to reinstate the full federal deduction for gambling losses, arguing the recent cap to 90% unfairly taxes players and harms the state’s core industry.
Key Takeaways:
- Nevada Congress members advocate for reversing gambling loss deduction cap
- Lawmakers receive significant campaign contributions from casino industry
- Industry-backed efforts highlight ongoing influence on federal policy
Tax Treatment of Gambling Losses Emerges as Policy Flashpoint
According to a review by the Washington Examiner, Representatives Susie Lee, Steven Horsford, Mark Amodei and Dina Titus have taken substantial campaign contributions from casino companies and affiliated PACs while advocating the change.
Industry backers including MGM Resorts, Caesars Entertainment and Wynn Resorts, coordinated through the American Gaming Association, say the limitation means some gamblers are effectively taxed on income they never truly earned.
Campaign finance records show the four lawmakers have received hundreds of thousands of dollars from gaming interests since 2020, with Susie Lee receiving the largest share, as reported by Next.io.
Supporters frame the proposal as correcting an unintended consequence of recent tax legislation that, they argue, creates so-called “phantom income” for players and complicates payrolls and reporting for Nevada employers, per The Las Vegas Review Journal.
Campaign Funding and Industry Coordination Draw Scrutiny
Opponents worry about the fiscal impact of restoring full deductibility and the optics of policy shaped by industry donations.
Industry officials told the American Gaming Association they engaged members late last year to build momentum for the measure, and tribal gaming operators, equipment manufacturers and independent venues have also contributed to the advocacy effort.
A spokeswoman for Susie Lee described the change as a technical fix that would protect Nevada jobs and commerce. The push comes as Nevada’s casino sector remains under pressure to sustain gaming-led revenues amid uneven tourism trends.
