AGA Pens Letter Supporting Reversal of New Big Beautiful Bill Gambling Tax
The American Gaming Association (AGA) has expressed support for the introduction of the FAIR BET Act by Nevada Rep. Dina Titus, stating its intention to collaborate with lawmakers and the Trump Administration to reinstate long-standing tax policies regarding gambling losses. The legislation seeks to restore provisions that allow taxpayers to deduct gambling losses against their winnings when calculating taxable income, a practice that has been part of the Internal Revenue Code for over 50 years.
LISTEN TO THIS ARTICLE:The AGA's statement of support underscores growing concern within the regulated gaming industry about recent changes to tax policy that affect individual gamblers. Many sports bettors and poker enthusiasts fear that limiting their ability to deduct losses could lead to negative financial consequences and push more activity into unregulated or illegal gambling markets.
The potential for increased participation in offshore betting operations is viewed as a public policy risk, as these markets often lack consumer protections, regulatory oversight, and tax compliance.
Although the AGA was initially quiet on the issue, the organization pointed to a letter it submitted to the Committee on Ways and Means earlier this year. In the letter, the association emphasized the importance of preserving the netting rule, which permits taxpayers who itemize to deduct their gambling losses from their winnings.
This deduction ensures that individuals are taxed on their actual net income from gaming, rather than gross winnings, which can result in unfairly high tax liabilities.
Beyond the FAIR BET Act, the AGA has also outlined a comprehensive tax policy agenda to support the continued growth and modernization of the US gaming industry. Key items on this agenda include raising the threshold for slot jackpot tax reporting, which has not been updated in decades and currently stands at $1,200.
The association argues that adjusting this limit to reflect inflation would reduce unnecessary administrative burdens for both operators and the Internal Revenue Service.
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Federal Excise Tax on Handle Unwelcome
The American Gaming Association is also advocating for the repeal of the federal excise tax on sports betting handle, a provision dating back to an era when sports betting was largely illegal nationwide. Industry representatives believe the tax is now outdated and counterproductive in the current legal environment, where more than 30 states have regulated sports betting markets. Eliminating this tax, the AGA asserts, would free up resources for state-level enforcement and responsible gambling initiatives.
Additional policy goals include preserving the current federal corporate tax rate, extending bonus depreciation to support capital investment in casino infrastructure, and repealing provisions that require companies to capitalize and amortize research and experimental expenses. The AGA has also called for Sovereign Tribal Nations to be granted the ability to utilize Private Activity Bonds, which are currently limited to state and local governments.
This would help tribal gaming enterprises access more favorable financing options for community development and infrastructure projects.
Furthermore, the AGA is pushing for the elimination of taxes on tips received by gaming industry employees, many of whom rely on gratuities as a significant portion of their income. It also seeks to preserve the deductibility of business-paid state and local taxes, which affect casinos operating in high-tax jurisdictions.
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