Casino Executives Lobby to restore Gambling Loss Deduction
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A group of Las Vegas casino executives and the American Gaming Association’s (AGA) top lobbyist recently met with a key congressional representative in an attempt to reverse a provision within recently enacted legislation that will impact gamblers starting next year.
The Issue: changes to Gambling Loss Deductions
Currently, gamblers can deduct gambling losses up to the amount of their winnings. However, a provision within the new tax law changes this. Beginning in 2024,gamblers will only be able to deduct gambling losses up to the amount of their winnings,but only if they itemize deductions. This change is expected to disproportionately affect casual gamblers who don’t typically itemize, as well as high-stakes players who rely on the deduction to offset significant wins. The change stems from the Tax Cuts and Jobs Act of 2017,which suspended miscellaneous itemized deductions subject to the 2% adjusted gross income (AGI) floor.Gambling losses fall into this category IRS Newsroom.
Why the Change Matters
The previous rule allowed gamblers to offset wins with losses, irrespective of whether they itemized. The new rule effectively treats gambling as a hobby rather than a potential business activity for many, limiting the tax benefits. This change is projected to increase tax revenue, but casino executives argue it will discourage gambling and harm the industry. The AGA estimates the change will cost gamblers over $1 billion annually American Gaming Association.
The lobbying Effort
On Monday, Derek Stevens (circa, Golden Gate, The D), Bill Hornbuckle (MGM Resorts), Tom Reeg (Caesars entertainment), Craig Billings (Wynn Resorts), and Bill Miller (President of the AGA) met with U.S. Rep. Jason Smith, R-Missouri, chair of the House Ways and Means Committee. Their goal was to persuade Smith to support legislation restoring the previous 100% deduction for gambling losses. The House Ways and Means Committee has jurisdiction over tax legislation,making Smith a crucial figure in this effort House Ways and Means Committee.
Key Arguments Presented
The casino executives reportedly argued that the change:
- Will discourage recreational gambling.
- Will harm the casino industry and related businesses.
- Is unfair to gamblers who view gambling as a legitimate form of entertainment.
- Creates a competitive disadvantage for U.S.casinos compared to those in other countries with more favorable tax rules.
What Happens Next?
The outcome of the lobbying effort remains uncertain. Rep. Smith’s position on the issue is currently unknown. Restoring the deduction would likely require a legislative amendment, which would need to pass both the House and the Senate and be signed into law by the President. The AGA and casino companies are expected to continue their lobbying efforts in the coming months. The timing of any potential legislative action is unclear.
Key Takeaways
- A recent tax law change limits the ability of gamblers to deduct losses.
- Casino executives are lobbying to restore the previous deduction.
- The outcome of the lobbying effort is uncertain and depends on legislative action.
- The change primarily impacts those who itemize deductions and casual gamblers.
Publication Date: 2025/12/13 03:04:30
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