Amid uproar, Titus seeks fix to Trump’s ‘big, beautiful bill’ gambling deduction change
I was hoping for a quiet July Fourth weekend. But chaos rained down as the gaming community lost its collective mind over a legislative change on how gamblers are taxed on wins and losses. At least I had a nice ocean view.
Gamblers and gaming industry observers said President Donald Trump’s so-called "big, beautiful bill" wasn’t very pretty.
An amendment tucked into the more than 1,000-page budget legislation by Senate Finance Committee Chairman Mike Crapo (R-Idaho) changed the tax code, limiting the amount gamblers can deduct from their winnings from 100 percent to 90 percent of their losses.
For example, someone may win $100,000 during a Las Vegas casino trip, but for the year, have $100,000 in gambling losses which they can write off on their taxes. Under the new bill, that person would now have to pay taxes on $10,000 in gambling income under the withholding change in the bill.
It didn’t take long for gaming observers to express their outrage at the change, which would go into effect in 2026.
Gaming consultant Steve Ruddock, writing on Substack, said the bill “sent shockwaves through the gambling world with a contentious amendment that could significantly impact professional and some recreational bettors.”
Las Vegas-based Gary Kondler, who prepares taxes for full-time sports bettors and poker players from across the country, told The Washington Post about the “absolute chaos” fielding clients’ panicked calls.
CBRE Equity Research gaming analyst John DeCree wrote in a research note that the change could cause some high-volume gamblers, such as poker players and sports bettors, to break even or lose money in a given year.
“Although this customer isn't particularly profitable for the industry given the relatively low win margins, recreational players could also see higher tax liabilities and reduced betting volumes,” DeCree wrote.
On Monday, Rep. Dina Titus (D-NV) introduced the Fair Accounting for Income Realized from Betting Earnings Taxation (FAIR BET) Act that would restore the 100 percent deduction.
She quickly picked up two co-sponsors, Reps. Ro Khanna (D-CA) and Troy E. Nehls (R-Texas), giving the legislation bipartisan support and lawmakers from two states without legal sports betting.
In a post on the social media platform X, Khanna wrote that “Republicans just passed legislation to kneecap sports and gambling in America.”
Titus, who chairs the Congressional Gaming Caucus, expects her co-chair, Rep. Guy Reschenthaler (R-PA), will also sign on to the bill.
A spokeswoman for Rep. Mark Amodei (R-NV) said the state’s only GOP congressman would be added as a co-sponsor Thursday.
Titus told The Nevada Independent in an interview on Tuesday, “We didn't know about the change until we got the bill. We go through every single bill looking for the word gaming because we're always a target.” She said the House leadership would not accept any amendments to the budget bill to prevent delaying the planned July Fourth signing ceremony by Trump.
Titus also thought the predicted $1.1 billion in tax dollars that Republicans said the change would generate was high.
Tribal gaming leaders also opposed the betting tax change, with Victor Rocha, a leader in Southern California’s Pechanga Tribe, saying the bill would create “pain” in all gaming markets.
In a statement, the American Gaming Association offered its support for the FAIR BET Act “to restore the long-standing tax treatment of gaming losses.”
The Washington, D.C.-based trade group noted that gaming did get one small victory last week. The tax reporting threshold on slot machine jackpots was increased from $1,200 to $2,000 under the Trump bill.
However, Titus has been advocating since 2015 to increase the reporting threshold to $5,000. In 2024, the IRS Advisory Council said the figure should be raised to $5,800.
In a letter to the leadership of the two congressional budget committees, the AGA suggested that 11 “antiquated gaming tax policies” be considered during the budget talks, including eliminating a small federal excise tax on sports betting that Titus has been seeking to end since 2014.
The slot tax threshold was the only issue addressed by the committees.
Primm operations further reduced with closure of Buffalo Bill’s
Seven months after closing Whiskey Pete’s, one of three resorts in the tiny gaming community and rest stop at the Nevada-California state line, Affinity Gaming announced shortly before the July Fourth holiday that it was closing Buffalo Bill’s, its largest property in Primm.
The move left the Interstate 15 market with one full-time hotel-casino, the 624-room Primm Valley Resort. Before New Year’s, the property was undergoing renovations to its hotel and public spaces, with its redesigned casino floor having been upgraded with new slot machines.
With 1,242 rooms, Buffalo Bill’s was the largest resort in Primm. The property, which opened in 1994, was also home to the 6,000-seat Star of the Desert Arena and the Desperado roller coaster, one of the world’s tallest thrill rides that has a 225-foot drop through the roof of the casino.
But the recession, pandemic and the rapid expansion of tribal gaming in Southern California took away a large part of the market’s business. The privately owned 371,000-square-foot Primm Valley outlet mall, which is attached to the Primm Resort, is down to one store — Sanithrift, a large thrift store that took over a space once used by clothing supplier H&M. At its height in the early 2000s, the mall had roughly 100 shops and food offerings.
In an unsigned statement, the company said Buffalo Bill's closure was not permanent and that it will continue to host concerts at the arena, with plans for a new entertainment lineup in the fall.
Affinity has discussed turning Whiskey Pete’s into a non-gaming attraction.
Meanwhile, gaming industry observer John Mehaffey scooped everyone on June 30 with a posting on his Vegas Advantage website reporting that Buffalo Bill’s was closing with operations switching over to Primm Valley. Mehaffey noted in his post that visitation by Primm’s largest customer base, the Southern California Hispanic market, had dried up in the past few months.
Venetian operators settle religious discrimination and retaliation complaint
The Venetian Resort agreed to pay $850,000 to settle a lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC) alleging religious discrimination and retaliation.
The incidents took place at the Strip resort before the property’s operations were sold by Las Vegas Sands to Apollo Global Management as part of a $6.25 billion deal that involved VICI Properties and included The Palazzo and Venetian Expo.
The EEOC’s suit said The Venetian violated federal law by refusing to accommodate the religious beliefs of certain employees and alleged the company retaliated against employees who opposed these acts of religious discrimination.
According to the consent decree filed by the EEOC, the current operators of The Venetian Resort “are the appropriate entities to implement and carry out the monetary and injunctive relief obligations.”
A spokesman for Las Vegas Sands said the company “was not responsible for any payments.”
What I'm reading
💲 Kalshi hits $2 billion valuation after latest funding round — Charlotte Capewell, Complete iGaming
Critics warn that Kalshi and other prediction market operators serve as a “backdoor to gambling,” an allegation the company firmly rejects.
📃 Macau planning to ban all forms of advertising for gambling activities — Pierce Chan, Inside Asian Gaming
Macau’s casino advertising laws have not changed in 30 years. Rapid and evolving technology is behind the changes.
📜 California bill targeting sweepstakes casinos draws tribal support, industry opposition — Chez Oxendine, Tribal Business News
The legislation targets online sweepstakes casinos. California’s attorney general is considering a full ban on the platforms.
News, notes and quotes
🎰 Tom Jingoli promoted to president of Konami Gaming
Konami Gaming promoted Tom Jingoli to president of the Japanese gaming equipment manufacturer’s North America division, which is headquartered in Las Vegas. Jingoli has spent 20 years with the company in various leadership positions, most recently as chief operating officer. He has been involved with compliance, sales, marketing and customer service. Jingoli was also named managing director of Konami’s Australia subsidiary. Jingoli spent four years as an investigative agent with the New Jersey Division of Gaming Enforcement before moving west to Las Vegas and earning an advanced degree at UNLV. Konami also named Steve Sutherland, its Las Vegas CEO, to the additional role of corporate officer for the parent company.
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