Dave Schenk opened issue #1: Major Casino Companies See Potential 'One Big Be...

Dave Schenk
2026-04-10T20:25:18Z

Legislation that upset much of the gambling market could drive numerous hundred million dollars in benefits for Las Vegas, Nevada's biggest gambling establishment operators.

operators see a tax windfall: MGM and Caesars anticipate over $100 million each in gain from the One Big Beautiful Bill (OBBB), driven by lowered tax liabilities.

Industry alarm over reduction cut: The OBBB's gambling loss deduction reductions from 100% to 90% stimulated concern among gamblers and stakeholders fearing long-lasting damage.

Bipartisan repeal efforts grow: Casino CEOs and legislators from both celebrations are pressing to bring back the 100% reduction before the change works on Jan. 1, 2026.

Executives from MGM and Caesars said this week the One Big Beautiful Bill could create more than $100 million in monetary benefits for their respective business. Speaking during each company's recent profits calls, leaders from the two largest gambling establishment operators on the Vegas Strip saw the law as a net gain to their bottom lines.

Caesars CEO Tom Reeg said the bill would mean $80 to $100 million less in money taxes than the business predicted before it was signed into law last month. Reeg said that would suffice to cover cash flow losses from lower-than-average 2nd and 3rd financial results from Las Vegas.

MGM Chief Financial Officer Jonathan Halkyard said during this week's profits call presentation his company's tax projection enhanced from a liability of around $100 million to a favorable refund of $100 million.

"It's a quite significant change," Halkyayrd stated.

Bettors fears

The executives' remarks come as the OBBB's gambling winning tax deduction modifications alarmed bettors and other industry stakeholders.

The bill decreases deductions on betting profits from 100% of losses to 90%. A theoretical gambler who details their returns that won $100,000 and lost $100,000 in 2025 wouldn't have to pay taxes on the earnings. In 2026, that very same gambler might just deduct $90,000 in losses versus the $100,000, implying they 'd require to pay taxes on $10,000 in profits that didn't produce a revenue.

Professional poker players, sports bettors and other high-profile gamblers required to social media, saying the tax modification would require them to leave the market or turn to untaxed alternatives. Though it just directly impacts the relatively small percentage of gamblers who detail their tax returns, stakeholders fear the change might have an unhealthy effect on the legal market as a whole.

The American Gaming Association applauded the costs in general, consisting of a provision that eliminates taxes on tipped employees, who comprise a substantial portion of the roughly 1 million employees operating in U.S. casinos. The AGA likewise lauded the slot winning tax increase reporting threshold from $1,200 to $2,000, a long-time top priority.

Gaming experts were unclear if the OBBB's tax code modifications effect slot reporting thresholds. MGM CEO Bill Hornbuckle stated during today's earnings call he thought it had actually increased the level where a slot operator must file a video gaming tax return.

As significant gaming operators admire much of these changes, these have been overshadowed by the tax deduction reduces, an undesirable change the public and gaming companies are increasingly familiar with.

"Obviously, the tax reduction limitation is impactful," Hornbuckle said during the MGM incomes call, "and in specific, we consider it affecting VIP players and a few of the professional gamers who bounce around a range of properties."

Repeal efforts underway

These companies signed up with the AGA and members of both parties in working to bring back the 100% deduction.

Democratic Nevada Rep. Dina Titus, whose district includes the Strip's south end, introduced legislation to bring back the 100% deduction days after the OBBB passed. It's given that gained 10 co-sponsors, including members of both celebrations. Republican Rep. Andy Barr of Kentucky introduced comparable legislation a couple of weeks later on.

Hornbuckle stated he, Caesars' Reeg and Wynn CEO Craig Billings consulted with Missouri Rep. Jason Smith last week in Vegas to discuss bring back the deduction. Smith, who chairs your house committee supervising the expense, said throughout a public hearing recently after consulting with the CEOs he would work to return the 100% limit.

Despite growing bipartisan assistance, the legislation's passage is far from specific.

A preliminary effort to pass companion legislation through the Senate by means of consentaneous approval was turned down by Republican Indiana Sen. Todd Young. The bill needs to still pass the Senate as well as your house.

Your house is also not set to go back to routine organization up until September, offering less than 4 months to reverse the 90% deduction before it takes result Jan. 1, 2026. It's likewise among lots of possible modifications to the OBBB under consideration in a closely divided Congress.

Bottom line

Early signs from lawmakers in both celebrations and chambers is an openness to think about the modification. In either circumstance, the OBBB still includes significant changes the video gaming market's biggest business preferred.