The biggest names in Vegas casinos descended on Washington this week with a unified message: fix the gambling loss deduction before it kicks in.

Derek Stevens of Circa, Bill Hornbuckle of MGM Resorts, Tom Reeg of Caesars Entertainment, and Craig Billings of Wynn Resorts met with Representative Jason Smith, chairman of the House Ways and Means Committee, to push for restoring the full 100% gambling loss deduction.

The Quick Hit

• Who showed up: Derek Stevens (Circa), Bill Hornbuckle (MGM), Tom Reeg (Caesars), Craig Billings (Wynn), Bill Miller (AGA)
• Who they met: Rep. Jason Smith (R-MO), Ways and Means Chairman
• What they want: Restore 100% gambling loss deduction (currently cut to 90%)
• The ally: Smith called the 90% limit a "mistake"

The Casino Coalition

When the CEOs of MGM, Caesars, Wynn, and Circa show up together in Washington, they're not there for a photo op. This was a coordinated lobbying push with Bill Miller of the American Gaming Association joining the effort.

The One Big Beautiful Bill Act cut the gambling loss deduction to 90%, creating what the industry calls "phantom income" — taxable winnings that don't actually exist when bettors break even or lose.

For the casinos, this threatens customer volume. If high-rollers face significant new tax liability on money they never made, they might gamble less. That's bad for everyone on the casino side of the table.

Smith's Receptive Response

Chairman Smith publicly called the 90% provision a "mistake." For a committee chairman to criticize legislation his party passed, something unusual is happening.

The FAIR BET Act, introduced by Representative Dina Titus of Nevada, would restore the full deduction. Nevada's congressional delegation supports it. The question is whether other lawmakers care enough about gambling tax policy to prioritize a fix.

Why The Industry Is Mobilizing

This isn't just about the tax change itself. The casino industry sees the 90% deduction as part of a broader trend of states and the federal government treating gambling as a cash cow.

Illinois added per-bet fees this year. Maryland and New Jersey raised sports betting tax rates. States are squeezing the industry from every angle.

The federal loss deduction cut is different because it directly hits customers rather than operators. But when customers get hurt, their spending habits change. The casinos know this.

The Unusual Alliance

The American Gaming Association joining this lobbying push is notable because DraftKings and FanDuel just quit the AGA over prediction markets. The trade group is in an awkward position — representing traditional casinos while its biggest sports betting members walked out.

But on the gambling loss deduction, everyone agrees. Casinos, sportsbooks, and the AGA want the full deduction restored. It's one of the few issues where the fractured industry presents a unified front.

The Path Forward

The FAIR BET Act needs to pass both chambers and get signed by the president. That's a heavy lift for a niche tax provision.

But with the Ways and Means chairman calling the current law a "mistake" and the industry's biggest players personally lobbying, there's at least a chance. Tax fixes happen in subsequent legislation all the time.

The Bottom Line

The people who run Las Vegas casinos are personally telling Congress that the gambling loss deduction cut was wrong. That's an unusual level of engagement for a tax provision most Americans don't know exists. Whether it works depends on how much Washington cares about gamblers — which historically hasn't been much.