Republicans' Tax Scam Hits Nevada's Gaming Industry Hard

As Congresswoman Dina Titus introduced bipartisan legislation to reverse the provision in the Republican spending bill that puts a new tax on 10% of gambling losses, U.S. Senator Catherine Cortez Masto's efforts to pass a fix were blocked by Republicans. The new tax on gambling stands to deal a serious blow to Nevada's gaming industry and tourism economy, which is already reeling from the economic downturn. Nevada has the worst unemployment rate in the country, and international air travel to Las Vegas is down 8.7% compared to May 2024.

Key Takeaways:

• The Republican spending bill includes a provision that puts a new tax on 10% of gambling losses, which will harm Nevada's gaming industry and tourism economy.
• Congresswoman Dina Titus introduced bipartisan legislation to reverse this provision, but it was blocked by Republicans.
• U.S. Senator Catherine Cortez Masto's efforts to pass a fix were also blocked by Republicans.
• The new tax on gambling will require gamblers to pay taxes on 90% of their losses, instead of 100% deduction as previously allowed.
• Professional gamblers and industry experts, including Phil Galfond and Nate Silver, have slammed this provision as unfair and detrimental to the industry.
• The tax change will go into effect in January, and will likely result in fewer people gambling in Nevada, which will also harm gaming tax revenues in the state.
• The economic downturn in Nevada, including the worst unemployment rate in the country, will only exacerbate the impact of this tax change.
• U.S. Senator Catherine Cortez Masto stated that the change in the tax code will force gamblers to pay taxes on money they don't have, which makes no sense.
• U.S. Rep. Dina Titus said that the budget proposal contains a provision that harms professional gamblers by limiting their loss deductions, and she is working on a legislative fix to fairly treat gaming losses in the tax code.
• Nevada's Titus fights back on gambling hit in Trump tax bill, with Titus stating that the change is an attack on gaming and tourism in her district.

Statistics:

• International air travel to Las Vegas is down 8.7% compared to May 2024.
• Nevada has the worst unemployment rate in the country.
• The tax change will require gamblers to pay taxes on 10% of their losses, instead of being able to deduct 100% of their losses as previously allowed.
• If a player were to report winnings of $100,000 and losses of $100,000, the player would still owe taxes on $10,000.
• Gaming tax revenues in Nevada will likely take a hit due to the tax change, which will result in fewer people gambling in the state.

Sources:

• KLAS: Republican objection blocks Cortez Masto plan to close gambling tax loophole
• KSNV: Nevada congresswoman pledges to fix tax bill's change to gambling deductions
• Las Vegas Sun: Nevada's Titus fights back on gambling hit in Trump tax bill