Giant casino corporations anticipate substantial benefits from the 'Big Beautiful Bill'
The One Big Beautiful Bill (OBBB), a recent piece of legislation that has been signed into law, is set to bring about substantial financial benefits for the two largest casino operators on the Vegas Strip - MGM and Caesars.
The OBBB introduces a new tax provision that limits the deduction of gambling losses to 90% of winnings, down from the previous full (100%) deduction. This change, effective from January 1, 2026, creates a financial disadvantage for gamblers, particularly professional and high-stakes players, who can no longer fully offset their winnings with losses for tax purposes.
However, for Las Vegas's largest casino operators, this could have mixed financial consequences. While the legislation is anticipated to result in a net gain to the bottom lines of both MGM and Caesars, it poses potential challenges due to the possibility of reduced bettor activity and the encouragement of movement to offshore, unregulated gambling platforms.
Caesars CEO Tom Reeg has stated that the OBBB would result in a reduction of $80 to $100 million in cash taxes for their company. Similarly, MGM executives have predicted that the OBBB could generate more than $100 million in financial benefits for their company. During their recent earnings calls, leaders from MGM and Caesars expressed optimism about the OBBB's potential financial benefits.
The legislation's impact on the gambling industry in Nevada, with a specific focus on Las Vegas, is causing disruption. The industry fears losing revenue, as highlighted by U.S. Rep. Dina Titus and poker professionals. Nevada lawmakers, including Rep. Dina Titus, have introduced bills (FAIR BET Act) to reverse this tax change, emphasizing the financial harm it could bring to Las Vegas casinos by diminishing legal gambling activity and pushing bettors toward unregulated operators.
In summary, while the OBBB increases tax revenue via limiting gambling loss deductions, it poses financial challenges to Las Vegas’s largest casino operators by potentially reducing bettor activity and encouraging movement to offshore, unregulated gambling platforms - ultimately threatening their revenue streams. The industry and Nevada legislators are actively seeking legislative remedies to mitigate these impacts. The OBBB is projected to bring in substantial financial benefits for MGM and Caesars, making it a significant piece of legislation for the gambling industry in Nevada.
References: 1. ESPN 2. Kiplinger 3. CPA Practice Advisor
The OBBB's impact on Las Vegas's casino-and-gambling industry could potentially lead to decreased bettor activity, as expressed by poker professionals, and a shift toward offshore, unregulated casino-games platforms. This poses a significant financial challenge for the two largest operators on the Vegas Strip, MGM and Caesars, despite the legislation being anticipated to generate substantial financial benefits for them.
