US lawmakers receiving significant financial backing from the gambling sector have advanced legislation that mirrors industry policy objectives, a Washington Examiner study reports.

 

Most notably, this includes an effort to reinstate a full tax deduction for gambling losses.

An examination of federal election filings shows that four Nevada lawmakers Susie Lee, Steven Horsford, Mark Amodei and Dina Titus have endorsed a measure allowing gamblers to offset 100% of their losses against winnings for tax purposes.

The proposal would undo a recent adjustment within the One Big Beautiful Bill Act (OBBA) that capped loss deductions at 90%.

The change has been a long-standing priority for casino operators and related interests, which argue the reduced deduction creates an inequitable tax outcome.

The study found that, since 2020, gambling-related donors have directed substantial campaign funding towards the four representatives backing the measure.

Among them, Lee received the highest level of support, collecting close to $400,000 across the past four election cycles.

Amodei followed with contributions exceeding $300,000, while Horsford took in just under that amount. Titus, whose FAIR BET ACT sought to reverse the OBBA gambling provision, received roughly $200,000 during the same period.

These figures encompass donations to standard campaign committees, leadership political action committees, and other affiliated fundraising vehicles.

Industry advocacy intensified toward the end of 2024.

Senior figures from major casino operators, including MGM Resorts International, Caesars Entertainment, and Wynn Resorts, reportedly met with representatives from the American Gaming Association (AGA) to promote the tax revision.

 

All four Nevada lawmakers later supported the proposal and had already accepted contributions from executives and political action committees linked to those companies and the trade group. 
 

Casino industry targets survival through legislators

Campaign finance records reviewed in the study show that casino executives and PACs connected to the three operators contributed approximately $140,000 to Lee, $95,000 to Horsford, $85,000 to Titus, and $83,000 to Amodei since 2020.

Other similar records reviews have revealed connections between politicians and Las Vegas Sands, which has shown significant interest in swaying Texas on its anti-gambling stance.

The AGA also made direct donations to each lawmaker over that timeframe. The report notes that Lee, Horsford, and Amodei represent politically competitive districts, a factor that heightens the strategic importance of reliable fundraising sources.

At the centre of the legislative debate is the concept of phantom income.

Under the current 90% limitation, gamblers who finish a year with equal winnings and losses may still face a tax bill on the remaining non-deductible portion, despite having no net gain.

Supporters of the change argue this approach diverges from decades of tax policy that focused on taxing actual profits rather than gross activity.

The study also identified additional contributions from tribal casino operators, gaming equipment suppliers, and individual casino businesses.

It further found that some members of Congress with limited financial ties to the gambling industry have also expressed support for the legislation, indicating that backing for the measure extends beyond heavily funded lawmakers.

The list includes Reps. Nicole Malliotakis and Max Miller of New York and Ohio, respectively.

The Washington Examiner study highlights the intersection of campaign finance and tax policy, as well as how industry contributions and legislative priorities can converge around narrowly targeted provisions with significant financial implications.

 

 

 

 

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