‘Phantom income’ from new gaming tax tackled through bipartisan bill
There is widespread support for killing a piece of legislation that was part of last summer’s controversial budget package. It has not been as simple as some had hoped following the widespread condemnation from the gaming industry.
Rep. Steven Horsford (D-NV) hopes a full house is the winning hand in the effort to kill a piece of gambling legislation that has been universally condemned since last summer when it was snuck into the One Big Beautiful Bill Act.
Along with co-sponsor Rep. Max Miller (R-OH), Horsford introduced the “FULL HOUSE Act” to restore the 100 percent deduction on gambling losses that was reduced to 90 percent in President Donald Trump’s budget bill.
The legislation, which was introduced last week, differs slightly from the FAIR BET Bill introduced by Rep. Dina Titus (D-NV) shortly after the budget bill passed.
Both efforts would repeal a tax on money that gamblers didn’t win.
Although Titus’ bill was universally praised, it has not moved forward. It was also backed by House Ways and Means Committee Chairman Jason Smith (R-MO) during a “field hearing” in Las Vegas. Horsford said the legislation needs to come through Ways and Means, where he and Miller are members, to get the needed votes to pass.
“We will do anything we can to work with Dina to make this successful,” said Miller, telling The Indy he spoke with Titus on the House floor last week.
“We do believe the framework is in place, and this is the best shot we have to move forward to restore the original rule,” Miller added.
Under the budget legislation, which took effect on Jan. 1, a player who wins $100,000 and loses $100,000 can only deduct $90,000 from their winnings, forcing them to pay taxes on $10,000 of “phantom income.”
Casino customers took to social media and blasted the legislation with a barrage of fireworks just after it passed ahead of the July 4th holiday. During a town hall meeting in Las Vegas hosted by Titus last summer, several gamblers threatened to take their wagers to illegal offshore betting sites.
“This is a clean repeal,” Horsford told The Nevada Independent about his newly introduced legislation. “It ensures the wagering loss rule is restored to its original form, without complication.”
In a statement to The Indy, Titus said the bill introduced by Horsford and Miller is worded differently from her bill, but it would eliminate the tax on phantom income.
“I have said from the very beginning when we discovered this unfairness that it doesn’t matter how it is rectified. It just needs to be fixed,” Titus said. “It’s not about whose bill is used. It’s about righting a fundamental wrong that affects every person who gambles.”
Horsford agreed with Titus that lawmakers need to fix the underlying issue and get the legislation across the finish line.
Smith, who assured gaming industry leaders during meetings in Las Vegas in July and November that the language would be reversed, could not be reached for comment.
An optimistic statement from Smith was provided to The Indy in December: “I believe there is a bipartisan path forward to restoring full deductibility of gambling losses.” He didn’t share a specific timeline.
According to PlayUSA, tax analysts estimate the change could generate roughly $1.1 billion in revenue over eight years, but opponents argue it unfairly burdens gamblers.
Horsford said he “didn’t care” about who would be the lead sponsor for the bill.
“We need to get it done as quickly as possible, because time is of the essence,” he said.
Miller suggested the tax policy enacted last year was a disservice to the gaming industry. Ohio’s 11 casinos in 2024 brought in almost $3.3 billion in gaming revenue in 2024, the sixth highest of any U.S. state, according to the American Gaming Association. As a comparison, Nevada gaming revenue total was a record $15.6 billion in 2024.
“Casino employees, the folks who live in my district and rely on tips, are losing out on income because wealthy folks aren’t going to the casinos,” he said. “We need to fix this.”
Convicted bookmaker Bowyer nominated for Black Book inclusion
Convicted illegal bookmaker Mathew Bowyer is allowed to contest his inclusion in Nevada’s List of Excluded Persons.
But he’ll have to wait until August to do so.
He’s currently being housed at the low-security Federal Correctional Institution in Lompoc, California, serving a 12-month and 1-day prison sentence. The Nevada Gaming Commission has to approve the nomination, but a hearing wouldn’t happen until Bowyer is out of prison.
Then again, an appearance in front of the commissioners could be a futile effort.
Gaming Control Board member George Assad, after listening to Deputy Attorney General Nona Lawrence recite Bowyer’s history last week when nominating the illegal bookie for a lifetime ban from entering a Nevada casino, said Bowyer “came through Nevada like a vortex.”
Three Strip casino operators paid a combined $26.8 million in fines in 2025 to settle violations of federal anti-money laundering laws associated with Bowyer’s illegal gambling activities.
Caesars CEO Tom Reeg told the commission in November the Bowyer matter “has been a stain on the state” and “we’re embarrassed that we're a part of it.” The company paid a $7.8 million fine in connection with Bowyer’s activities.
“Normally, I wouldn’t give much airtime to this particular individual in this particular setting,” Gaming Control Board Chairman Mike Dreitzer said last week, adding the action “goes to the very core and the heart of Nevada’s gaming regulatory mission: the protection of integrity of gaming, the confidence of the public, and the reputation of the state as a gold standard for gaming regulation.”
Bowyer’s case made headlines worldwide after it was revealed he had taken thousands of bets from the Japanese interpreter for baseball star Shohei Ohtani of the Los Angeles Dodgers.
Bowyer and fellow illegal bookmaker Wayne Nix could become the 38th and 39th names on the list, which is commonly referred to as the Black Book. Nix, who was nominated for the Black Book in December, is also currently serving a prison sentence. His activities led to an $8.5 million fine paid by MGM Resorts International and the revocation of the gaming license for longtime Nevada gaming executive Scott Sibella.
Nix is scheduled to be sentenced by a federal judge on March 6.
What I'm reading
🤝 Leading prediction firms share a commonality: Donald Trump Jr. — Sharon LaFraniere, The New York Times
Traders in companies with ties to the president’s eldest son can bet on the outcome of events that the president affects.
🎰 Adapting U.S. slots for new IRS jackpot threshold could take months — Mark Gruetze, CDC Gaming
The law change increased the 49-year-old slot jackpot reporting minimum from $1,200 to $2,000. Thousands of machines designed by dozens of suppliers need to adhere to regulatory procedures in multiple states and tribal jurisdictions.
🛑 NCAA President calls for Commodity Futures Trading Commission suspension of college sports prediction markets — Charlotte Capewell, Complete iGaming
Charlie Baker is seeking additional safeguards before prediction market platforms can offer contracts on collegiate athletes
News, notes and quotes
🚧 Bally’s Chicago project delayed; no news on Vegas
Bally’s Corp., which has yet to move forward on its 500,000-square-foot retail, dining and entertainment district adjacent to the Athletics’ $2 billion stadium on the Strip, is delaying the opening of a $1.7 billion hotel-casino in Chicago until 2027. The hotel-casino is on a 30-acre site along the Chicago River. According to the Chicago Tribune, Bally’s is seeking a 12-month extension on its gaming license for its temporary casino, giving the permanent property until September 2027 to open. Bally’s officials said earlier this month the target launch for the permanent casino, which has been pushed back several times, was the 2026 fourth quarter. Bally’s has not said how it plans to finance its Strip project. The baseball stadium is expected to open in April 2028.
🟡 Sphere developers want to build a venue in Maryland
Sphere Entertainment announced plans to build a smaller version of Sphere Las Vegas in Maryland at the National Harbor dining, retail, gaming and entertainment complex near the Potomac River and Washington, D.C. A cost and timeline weren’t announced. The planned venue would be in the same development as the MGM National Harbor resort. “Our focus has always been on creating a global network of Spheres,” company CEO James Dolan said in a statement. In addition to the $2.3 billion Sphere in Las Vegas, the company plans a venue in the United Arab Emirates, specifically in Abu Dhabi.
🧙 … Meanwhile, Sphere Las Vegas tops $260M in Wizard of Oz ticket sales
The sale of more than 2 million tickets to the Wizard film has generated more than $260 million in revenue for the operators of Sphere Las Vegas. Sphere Entertainment plans to keep the 1939 film, which was transformed into an immersive experience, at the venue through December with multiple showtimes.
Updated on 1/21/2026 at 8:48 a.m. to correct Wayne Nix's legal status.