LAS VEGAS (KTNV) — Retaining a small tax change made in the so-called One Big Beautiful Bill could have a big impact on Nevada if it's not repealed, experts at a town hall said Monday.
Rep, Dina Titus called the town hall to hear from experts about the implications of the change, which limits gamblers to deducting 90% of their losses against winnings.
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Under the provision, a gambler could break even, but still owe taxes. Titus has vowed the repeal the measure.
"I'm pretty optimistic that when we go back, we'll have a chance to fix this," she said at the town hall, held at Las Vegas City Hall. "Now remember, we've got a year and a half because it doesn't go into effect until next year's taxes, which you don't have to file until the following April. So we have a little time, but we don't want to drag around, we want to get it done."
The chances of success are good; Titus's repeal bill — dubbed the FAIR BET Act — has the support of every member of Nevada's House delegation, and Republicans and Democrats have said they agree with it.
During a July 25 field hearing in Las Vegas, the Republican chairman of the tax-writing Ways and Means Committee said there's bipartisan support for repealing the provision.
"...for those of you concerned about this change, I can tell you that members on both sides of the aisle have heard you and I know that many members on both sides of the aisle are open to working to address it before it goes into effect on January 1st," said Rep. Jason Smith, R-Mo., according to a transcript of his remarks.
An attempt in July by Nevada Democratic U.S. Sen. Catherine Cortez Masto to quickly repeal the provision, however, ran into a procedural hurdle when another senator objected.
Panelists at the event were Nevada Resorts Association President Virginia Valentine, former state Sen. Becky Harris, a UNLV Distinguished Fellow in Gaming and Leadership, Russell Fox, a tax specialist with Clayton Financial and Adam Robinson, a board member of American Bettor's Voice.
All agreed that gamblers prefer the legal, regulated U.S. market to play, but that if the tax provision were repealed, gamblers would seek to play elsewhere, including unregulated offshore casinos.
And they said that if gamblers do choose not to come to Nevada because of the change, the state would lose out not just on gambling tax revenue, but all taxes that visitors who come to the state pay during their stay.
Harris, a former state senator and former chairwoman of the Nevada Gaming Control Board, said the deduction for gambling losses should be treated the same as every other business.
"I think the ability to deduct your gambling losses is no different than the ability to deduct your stock losses," she said. "And I think that it's something that's critical for people who engage in that activity and something that we should continue to do."
Titus has said she will try to insert her bill's language into another measure that must pass by year's end.