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Summary:
- Circa owner Derek Stevens believes the new 90% cap on gambling loss deductions in the Big, Beautiful Bill will put jobs and tourism in danger.
- High-stakes gamblers are already considering going offshore to avoid U.S. taxes.
- Nevada lawmakers in both parties are trying to reverse the change.
A quiet tax rule change slipped into the Republican-backed One Big Beautiful Bill Act (“Big, Beautiful Bill”) passed by Congress under the leadership of President Donald Trump who passed “No Tax on Tips” Bill earlier in the year has now sparked serious concern among Las Vegas Strip casino owners.
Derek Stevens is just one of the voices that have echoed warnings regarding the potentially devastating effects of the bill, with their biggest customers going offshore at the top of the list.
“This Affects Everyone in Las Vegas”
Stevens, who owns The D, Golden Gate, Circa, and Circa Sports, said in an interview with KTNV that the new limit on gambling loss deductions, now capped at 90% instead of 100%, could ripple through the city’s economy.
This affects everyone in Las Vegas, because this, like I said, will impact jobs. This impacts visitation, tourism. It’s an important thing that just needs to be corrected.
He said he’s already hearing from high-stakes players who are thinking about moving their play offshore, beyond the reach of U.S. tax law, if the rule stays in place.
Although the bill passed with support from President Donald Trump and a mostly Republican vote in Congress, Stevens doesn’t believe the change was intentional. He called it an oversight that slipped through because of how quickly the massive legislation was passed.
So, yeah, I don’t think anyone — Democrat or Republican — had any intent on hurting Las Vegas or, for that matter, hurting the gaming industry in any sense. It’s just that the way this developed, it will really hurt Vegas. It will really hurt the gaming industry. And that’s why this has to get fixed, because no one wants this to happen.
Lawmakers Working on a Solution
Nevada lawmakers are already pushing to undo the rule. Rep. Dina Titus, D-Nev., introduced a bill to restore the full deduction, and every member of the state’s congressional delegation, including Republican Rep. Mark Amodei, has signed on.
In the Senate, Sen. Catherine Cortez Masto tried to fast-track a similar measure, but it was blocked by Sen. Todd Young, R-Ind., who also supports repealing the rule but wanted to attach an unrelated amendment.
Even at the World Series of Poker, Stevens said, players have been talking about how the tax change could hurt them when it
comes time to file.
It should be a very simple fix, but I know everything gets a little more complicated sometimes than it ought to be
. Stevens added that the reversal would benefit all states and both recreational players and pro gamblers.
