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Trump's New Tax Law Threatens Las Vegas Gambling Industry

7/25/2025

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Summary

Story summary

President Trump's upcoming legislation, set to take effect on January 1, 2026, slashes gambling loss deductions from 100% to 90%. This significant shift threatens the gambling industry, especially in Las Vegas, as it raises tax burdens on professional gamblers. Lawmakers are scrambling to propose fixes, worried that the bill could push gamblers to offshore sites and diminish federal tax revenue.

History

Historical Context

The 1986 Tax Reform Act transformed tax deductions, particularly benefiting the gambling industry, which generated over $6 billion in revenue that year. Proposed changes in 2026 threaten to reduce these deductions, potentially pushing gamblers to unregulated offshore sites, reminiscent of trends from the early 2000s. This shift could decrease federal tax revenue and alter gambling practices, echoing past regulatory challenges.

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Story summary

President Trump's upcoming legislation, set to take effect on January 1, 2026, slashes gambling loss deductions from 100% to 90%. This significant shift threatens the gambling industry, especially in Las Vegas, as it raises tax burdens on professional gamblers. Lawmakers are scrambling to propose fixes, worried that the bill could push gamblers to offshore sites and diminish federal tax revenue.

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