Casinos rush to save gambling loss deductions before 2026 tax overhaul
A push to restore full tax deductions on gambling losses is gaining urgency as a key deadline approaches. Casino owner Derek Stevens is calling on Congress to fix an unintended change in the One Big Beautiful Bill, which will cut deductions from 2026. He warns the move could hurt tourism, hospitality workers, and millions of casual bettors across the US.
The issue stems from a provision in the One Big Beautiful Bill, introduced by Representatives Rosa DeLauro (D-CT) and Tom Cole (R-OK) in the House, along with Senators Ron Wyden (D-OR) and Bill Cassidy (R-LA) in the Senate. Though not intentional, the bill reduces the deduction for gambling losses—currently at 100%—starting in 2026. If applied retroactively, it would affect wagers made in states where full deductibility was previously allowed under older tax guidance.
The window to restore the full deduction before 2026 is narrowing. If no action is taken, bettors and operators in affected states will face higher tax burdens on losses. The outcome now depends on whether lawmakers prioritise the issue before the new rules take effect.
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