House Ways and Means Committee Chairman Jason Smith (R-MO) met with three gaming industry CEOs on Thursday evening in Las Vegas to discuss the recent controversial change in the tax code that limited the amount gamblers can deduct from their winnings from 100 percent to 90 percent of their losses. 

Less than 12 hours later, Smith committed to raising that percentage back to 100 percent by the end of the year before the change takes effect. 

His comments came at a committee “field hearing” aimed at promoting the more than 1,000-page “One Big Beautiful Bill,” signed by President Donald Trump three weeks ago. The committee heard testimony from a restaurant server, DoorDash driver, and others about how aspects of the bill — namely stopping taxes on tips, the Trump campaign promise first made in Las Vegas — would benefit them.

Republicans have sought to counter-program the steady strum of negative news around the bill, which extends otherwise-expiring tax cuts and will likely kick millions off of Medicaid and other safety net programs.

Smith blamed Senate Republicans for adding to the bill the last-minute gambling loss change, which prompted universal outrage by gamblers and the industry because it could lead to gamblers having to pay taxes even if they broke even for the year.

Smith said after the nearly three-hour field hearing that he met with three CEOs of large casinos on Thursday, including MGM Resorts CEO Bill Hornbuckle, whose company operates 31 resorts in five states, including 10 properties on the Strip.

“They praised numerous provisions in the [tax] code, and they only raised one that they had issues with,” said Smith, who acknowledged that he was contacted by several operators of the 13 casinos in Missouri, including two that are located in his district.

A spokesman for MGM Resorts confirmed that Hornbuckle was at the meeting.

In his opening remarks at the hearing, Smith committed to reversing the gambling tax change by working with Republicans and Democrats in the House. 

Following the bill’s signing, 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. Her legislation has bipartisan support, with 10 House members signed on as cosponsors.

Titus, who is not a member of the Ways and Means Committee, was asked to join the panel because the hearing took place at YESCO Sign Company, which is in her district.

“I was very glad to hear the chairman say he will work with us to undo that reduction in deductions from gaming losses,” Titus said. “The Senate did put it in there, but it came back to the House, which wouldn't accept any amendments, and [Republicans] voted for it. So let's be sure we know who's responsible, and let's work together to fix it.”

Rep. Steven Horsford (D-NV), who is a member of the Ways and Means Committee, said Senate Republicans “unilaterally thrust the gaming economy and its patrons into uncertainty with the unjust inclusion” of the tax change.

“I'm glad to hear your remarks today, but just for the record, I want to know that we have your commitment to work … to move that legislation forward,” Horsford told Smith.

“I think that we'll look at what avenues to continue to address the problem the Senate created,” Smith replied.

Senate Majority Leader Nicole Cannizzaro (D-Las Vegas), who was one of the seven witnesses invited to testify on the legislation, said in prepared remarks that the deduction changes “could have a chilling effect on high-volume and destination gambling, one of the core drivers of Nevada’s tourism economy.”