Published on: December 12, 2025, 08:31h.
Updated on: December 12, 2025, 08:31h.
- Derek Stevens and prominent Las Vegas figures advocate for restoring the IRS gambling tax deduction.
- The One Big Beautiful Bill is set to reduce the deduction from 100% to 90% next year unless an amendment is introduced.
- Nevada’s congressional representatives are spearheading the initiative to reinstate the gambling deduction.
Derek Stevens, a highly regarded casino owner with bipartisan appeal, is urging Congress to address a tax issue linked to the One Big Beautiful Bill, which reduces gambling loss deductions starting next year.
Stevens, whose Circa has revolutionized downtown Las Vegas, shared on X that he, along with MGM Resorts CEO Bill Hornbuckle, Caesars Entertainment CEO Tom Reeg, Wynn Resorts CEO Craig Billings, and AGA President Bill Miller, recently met with US Rep. Jason Smith (R-MO), chair of the House Ways and Means Committee, to address the issue of reduced deductibility of gambling losses stipulated in the GOP’s legislation. Currently, gamblers can deduct their losses up to 100%, but from 2026 onward, only 90% will be allowed for itemized filers according to the IRS.
“This was an unintended consequence of the One Big Beautiful Bill. While the government has pressing issues to manage, this should not be one of them,” Stevens stated.
Stevens encouraged his followers on X to reach out to their congressional representatives to advocate for support of bipartisan legislation introduced by Rep. Dina Titus (D-NV) and Senators Catherine Cortez Masto (D-NV) and Ted Cruz (R-TX) that aims to restore the full gambling deduction.
‘Essential’ Measures
Stevens asserted that imposing taxes on non-existent income would severely affect the hospitality and tourism sectors, along with their workforce. It would also have repercussions for “most Americans who placed a bet over the past year.”
Smith has faced criticism for allegedly blocking a committee vote on Titus’ FAIR Bet Act and preventing it from reaching the House floor. Stevens reported that the congressman urged the casino coalition to rally their constituents to contact their US senators and House representatives to back the FAIR Bet Act and the FULL House Act endorsed by Cortez Masto and Cruz, both aimed at reinstating the 100% gambling deduction.
On Thursday, Titus urged Smith to expedite a hearing for her FAIR Bet Act, which has garnered support from 21 other House representatives, comprising 13 Democrats and 8 Republicans.
“Though the adjustment may seem minor, it can have profound and detrimental effects. It imposes undue burdens on both professional and casual gamblers and will likely push players towards offshore and unregulated markets lacking consumer protections, thus jeopardizing responsible gaming initiatives across the nation,” Titus articulated to Smith.
In addition to the nearly two dozen congressional supporters, the FAIR Bet Act is backed by significant entities including the American Gaming Association, MGM, DraftKings, FanDuel, Caesars, Wynn, the Nevada Resort Association, and the National Thoroughbred Racing Association.
Potential for Retroactive Tax Restoration
As the holiday season approaches, the likelihood of restoring the gambling deduction to 100% before 2026 diminishes. Nevertheless, should Congress pass either the FAIR Bet or Full House Act next year, the legislation could potentially be amended to make the deduction retroactive to January 1, 2026, preserving the full deduction for wagers.