Casino Money Tied to Lawmakers Pushing Gambling Tax Break

A look at federal fundraising records shows that some members of Congress who have gotten big bucks from the gambling industry are now backing laws that casinos want.

Lawmakers Seek to Let Gamblers Fully Deduct Losses Once Again

The politicians, Nevada Reps. Susie Lee, Steven Horsford, Mark Amodei, and Dina Titus, want to bring back the full tax deduction for gambling losses. This would undo a recent change that capped the write-off at 90% of losses, something the gaming industry says is not fair to players.

Campaign records show the four lawmakers have gotten hundreds of thousands of dollars from casino companies, industry leaders, and political action committees in recent election cycles. Lee topped the list with $400,000 in gambling-related donations since 2020, with Amodei following at over $300,000. Horsford and Titus also pulled in big amounts approaching $300,000 and $200,000, reported the Washington Examiner.

Big casino companies like MGM Resorts, Caesars Entertainment, and Wynn Resorts have been key donors. Company executives and linked PACs from these firms met late last year with people from the American Gaming Association (AGA), the industry’s main lobbying group, to build support to bring back the full deduction.

The AGA and casino bosses say that capping the deduction means gamblers pay tax on money they never made. Right now, someone who wins and loses the same amount might still have to pay taxes on some of their winnings. This can lead to a financial loss even when they break even.

Lawmakers Frame Gambling Tax Change as Fairness Fix for Players

Titus has talked about this as a fairness issue. She thinks people should pay taxes on what they profit, not on fake gains created by tax rules. People in the industry agree with her. They point out that letting gamblers deduct all their losses was normal for years before it changed. 

Nevada lawmakers have been some of the loudest supporters of the proposal, but it has gotten backing from both parties in other states, too, even from representatives who have not received big donations from gambling companies.

Lee’s office stood by her stance, saying the earlier change happened by accident because of rushed lawmaking. They stressed how crucial gaming is to Nevada’s economy. Her spokeswoman pointed out that casinos give jobs to a big chunk of the state’s workers and pour money into its economy. She argued that fixing the tax rule would help both employees and businesses.

Apart from big casino companies, other donors tied to the gambling world include Native American tribes running gaming spots, makers of casino machines, and standalone gaming places.