I rarely write about politics. After all, whatever my political views are, it’s a safe bet that many of you have opposite views. Since part of my business model is to have some of you buy my beat-the-casinos literature, the fewer people I can alienate, the better for me.
Even though tariffs are about as political as it can get these days, what I have to say isn’t particularly political. My subject matter deals with how players take advantage of this situation.
Tariffs, basically, are a tax on imports — intended to protect the home country at the expense of foreign countries. My personal prejudice is that free trade, meaning no tariffs at all, is the better plan, but that’s neither here nor there. It is not my goal to try to convince you that my belief is best.
Consumers and business can adapt to relatively small tariffs if they’re predictable. The problem is uncertainty. If tariffs are announced, and then delayed, and then reinstated at a different rate, and then exceptions are announced, and then the courts make rulings changing the legality of tariffs — and then sometimes overturn those rulings — we have a whole lot of uncertainty. It’s hard for a small business to decide what to order for the Christmas season if that business can’t know what the prices are going to be.
Casinos, especially the large ones with hotels, have to buy thousands of items of all sorts to supply their needs. Some of those items have been hit with tariffs, which increases their costs the same as any other business.
This is compounded with a shrinking player base. Their customers (including you and me) are facing higher costs due to the tariffs. Many of their bigger customers are small business owners, who are facing an uncertain financial environment. While there are some players who are going to continue to gamble come Hell or high water, many gamblers are cutting back for a while.
Casinos typically react to rising costs and a shrinking player base in one of two completely opposite ways. The first of these is bad for the players and should be avoided, and the second is good for the players and I, for one, am playing more at such casinos.
The first way — bad for the players — is for the casino to tighten everything. Good pay tables are eliminated, mailers cut, and promotions are reduced. The casino is attempting to ride out this economic situation by reducing costs. There are several such casinos in Las Vegas, and I’m reducing or eliminating my play at them.
The second way that casinos deal with this economic situation is to bribe players to come in and play. They do this by having better promotions than they usually do. They reason that they will benefit from extra play as many players are fleeing from the other casinos that are tightening up. There are a few casinos that are doing this. When I find them, I patronize them and attempt to take advantage of their promotions.
This requires more scouting than usual, but for me, so far, once I figured out what to look for, it has been a successful approach. At this point, I’m not identifying the casinos I’m playing at less and the ones I’m playing at more. Maybe later. But once your eyes have been opened to what to look for, it’s not that hard to figure out which casinos have which approach to dealing with this economic situation.
Note: Let’s keep the comments, if any, on ways to beat the casino and away from politics. Whether you are in favor or opposed to Trump and his policies, or believe the courts are helping or hurting the situation, if you post such opinions in this thread, I will delete your post. Whatever your political views, there are other forums where your comments on that are welcome. My blog is not such a forum. Additional note: Since I prepared this blog and before its release date, Congress passed a law greatly penalizing gamblers tax-wise. So greatly that I, for one, am strongly considering giving up gambling at the end of 2025. At the age of 78, I’ll have to figure out what I want to do when I grow up. Richard Munchkin and I are attempting to get our tax guru, Russell Fox, to do a special episode of Gambling with an Edge. Assuming Russell Fox comes on the show, after talking to him I may find a way to continue my profession. We’ll see. As in the previous note, if you comment on this, keep it away from political diatribes. Keep it on the theme of succeeding at gambling.
the good news is that i rarely win jackpots over the $1200 limit so the new tax laws won’t affect me that much.
very interesting on what you said but you mainly play video poker slots what about the other slots ie buffalo for example.
wonder how bad that new tax law will hurt the casinos and also how bad it will hurt the states also be interesting to hear toyr comments on it
A bill, called the FAIR BET, has already been proposed to eliminate that law stuck in the OBBBA by a Senator from Idaho. Story in the 7/8 LVRJ
https://reschenthaler.house.gov/imo/media/doc/the_slot_act.pdf
If signed by President Trump, the SLOT Act could reverse the new tax provisions introduced in the BBB.
So Bob, rather than spending more time drafting blog posts, maybe channel that energy where it counts—contact your senators and urge them to support this bill.
I, and millions of other gamblers, am still waiting for the threshold for taxation on jackpots to be raised from $1200. This has been mentioned for decades – I am tired of the government sharing in my rare winnings.
That $1200 threshold is pretty asinine. The only other comment I’ll make is that I wouldn’t be too quick to assign legislative blame to a beard. In other words, don’t assume when someone volunteers to be responsible for something that they are.
I would bet that in the next bill that comes out, the gambling provision will be removed. And possibly the $1200 threshold. I have heard, from my friends in Washington, that it will be raised, but that is being “privately” debated. Could be $4k or larger, if they do anything. If the tax law sticks for 2026, I will be done with gambling. Did pretty well in 2024, and was able to have net $0 tax wise. If it does not stay that way, I am out.
Another option for slot/video poker players…switch to table games.
2026 will be the year of blackjack.
Being a resident cynic, I doubt if being able to deduct just 90% of losses is going to affect how 99.99% of people play. Maybe, possibly, for those who are on an annual gaming budget, they will hit their personal wall a trip sooner than usual, say in November. But my guess is that the majority of people who budget their gaming will find some excuse to tack on an extra trip or loss bracket when that time comes.
I think this is the natural outcome of what the gaming industry calls a “mature market.” Addicts, in other words, be addicts. Routines be routines. Getting tagged with a 10% surcharge won’t even slow most people down. The more likely outcome is fewer trips to high end dining or something to compensate for the re-arranged budget.
I think this change could klll the YouTube gambling business. Even when they’re net losers, creators like NG Slot, Raja, or Vegas Matt still receive eight-figure W-2Gs annually—resulting in multi-million-dollar tax liabilities. It’s unsustainable.
As for APs who bet big and pull in seven- or eight-figure W-2Gs, many will likely walk away entirely. The tax burden erases their edge.
And for recreational high-limit gamblers with W-2Gs in the high six or low seven figures, the financial hit could be a wake-up call—they may need to confront and address their gambling habits just to avoid ruin.
For most of those low rollers who never get a w2g playing for years, they will make casino great again!
“Their customers (including you and me) are facing higher costs due to the tariffs. ”
Yet did you write an article on how Inflation spiked during 2021-early 2025 and its impact on Las Vegas and its gamblers? According to data, the cumulative CPI rise from January 2021 to January 2025 was approximately 21.9–22.1%. That’s huge. Everyone and anyone felt this from Las Vegas, especially in food prices in restaurants, the grocery stores, at the gas pump, etc etc etc. And again, your angle, impacts Las Vegas and its visitors and gamblers. Big time. And not to mention everything we buy in our own lives, especially far higher jumps in insurance rates and beyond with major spikes which once again impacts Las Vegas customers as you state, far more than the tariffs at this point and with negotiations ongoing, odds are quite high the impact might be little to nothing or temp speedbumps, time will tell. Tariffs can also be “eaten” a bit along the chain and not passed on. Inflation, you can’t do that.
So while you talk about shrinking gambling base and rising prices from tariffs, to ignore the major rises prices and inflation we faced for years from 2021 – early 2025 before tariffs popped along is an incomplete point to make to say the least. All one has to do in Las Vegas or anywhere is to see the price of restaurant menus in Las Vegas and around, way before tariffs. Yet no mention of this. And to ignore the fact that gambling interest and revenue streams have been shrinking for a long time now regardless of inflation, rising prices, or tariffs, your blog seems at least a bit incomplete, and perhaps dare I say, biased? And late to the party of not discussing the elephant in the room that we all witnessed from the major price rises from 2021-early 2025 and dwindling gambling revenue in Las Vegas for years, decades as I recall.
As for the new legislation in gambling write-offs which I understand is down to 90% vs 100%, not understanding the big deal here except for major gamblers like yourself where $1 million bucks will miss $100k in write-offs, but my bigger thought….why in the world should taxpayers subsidize gamblers at any level in the first place? I’m not anti gambling at all, but isn’t it everyone’s choice to gamble, to lose or win is on them? Along with so many other “write-offs” and tax credits and deductions, I’d frankly love to get rid of most of them. And gambling write-offs just seem downright perverse to me frankly on many levels.
If gambling is treated as a business, then logically, taxes should be applied to profit—not revenue. Consider a home business: if you generate $100K in revenue but end up with a $10K profit after expenses, but now you are taxed on that $19K instead of $10K? That doesn’t seem reasonable.
So I am rewording what you wrote…
“I’m not anti doing business at all, but isn’t it everyone’s choice to do business, to lose or win is on them? Along with so many other “write-offs” and tax credits and deductions, I’d frankly love to get rid of most of them. And business write-offs just seem downright perverse to me frankly on many levels.”
You missed my point. “Most” is vague by me, could be 51/49, 99/1, so let me clarify.
I don’t want to go down a rabbit hole because it goes beyond the topic here, but depreciation on equipment and such for a business producing something for society, a service or product, I get it. Tax write-offs and credits for electric cars? NO. Quick examples, I won’t list 100’s of what I believe is ok or not as again, it goes off topic on gambling. And it really doesn’t matter, as the focus here is gambling write-offs.
Frankly, for gamblers to say they are in the “business” of gambling is an oxymoron imho.
Analogy time. IMHO, like gambling, collecting coins or cards is typically a personal pastime, not a business, and produces no societal or economic value in the way a business with a product or service might. So allowing someone to deduct the cost of buying, trading, losses involved, or storing collectibles seems absurd to me also because it’s a discretionary activity driven by personal enjoyment, not a productive enterprise that produces a product or service.
For those who think gambling produces a product or service? We shall part agreeing to disagree.
You’re absolutely mistaken — your understanding of what defines a business is off the mark.
Business refers to any activity where an individual or entity engages in transactions that involve earning profits or incurring losses. It’s fundamentally tied to money. A business doesn’t require a physical location, factory, equipment, or formal infrastructure. If you’re performing actions that generate income, you’re conducting business.
Gamblers, in this context, are essentially business owners of themselves. They’re self-employed and operate as sole proprietors, which qualifies them as business entities.
Understand now?
“And gambling write-offs just seem downright perverse to me frankly on many levels.”
Maybe if you were a winning gambler, you would understand.
Come on, it’s a losing endeavor for the vast majority of people. And if there were so many “winning gambler” out there, why would so many people be getting worked up over the 100 to 90% write-off matter??? If it takes tax laws to tip one into a winner, that doesn’t sound like an organic winner, right?
The bigger matter is gamblers will soon have to do what countless businesses big and small do where the tax law says they don’t have the ability to write-off 100% of many things.
We all have our views on the matter which is worth exactly nothing. Then there’s reality of the new tax laws. Life goes on.
That’s why recreational gamblers won’t care, I have a small winning play weekly at my local casino, and I’m a winner over the last 2.5 years. I can’t itemize, so this does not affect me. For people who itemize, it can make a difference whether an advantage play is worthwhile or not. Advantage plays are somewhat easy to find if you care and enjoy scouting for them.
Gamblers already have to do what other businesses do and more.
It seems you may be interested in this, so I will recommend a book published by this website to learn more.
https://www.lasvegasadvisor.com/shop/products/tax-help-for-gamblers-fourth-edition/
Thanks for the reference. No, actually I gamble so little and infrequently frankly. As one who enjoys Las Vegas hanging out, taking in entertainment, enjoying nice resorts, the food, etc. it’s more of the bigger context of analyzing the matter vs what sole proprietorships, small business, and frankly businesses of all sizes have had to deal with forever, only able to write off small amounts often and somehow thrive with those rules. Though I can understand when the candy store prices go up, those that eat candy, especially those that gobble it down in huge amounts, will get peeved.
“And if there were so many “winning gambler” out there, why would so many people be getting worked up over the 100 to 90% write-off matter???
They are getting worked up because they are winning gamblers.
If it takes tax laws to tip one into a winner, that doesn’t sound like an organic winner, right?”
Taxes matter, margins are small, and there aren’t any “organic winners”. There are purposeful winners.
Apply that same mentality to the stock market. Let them write off only 90% of their losses. See what happens.
Buying stocks is a gamble. Plain and simple.
Everyone has choices – if you prefer to gamble, the rules have changed. It is your choice as to whether you wish to continue to gamble. You may not like the change, but this is where we find ourselves today.
Blunt reality.
In addition, it’s a bit of welcome to reality as in the business world, many expenses aren’t fully deductible either. Businesses face limits on net operating loss deductions, which can be capped or carried forward with restrictions under IRS rules. Yet with all these limits on deductions, businesses operate fine under these rules.
Regardless, it is what it is.
It could also cause companies like the WSOP or WPT to decide not to host tournaments in the US. Why would anyone risks losing money after winning in the US, when they can play in other countries and make money?
There is more involved they you may have considered.
Very true, just like so much of US manufacturing was outsourced to other nations for cheaper labor/costs.
Welcome to reality, nothing lasts forever.
True. I would lean toward keeping business in the US, instead of trying to bring back biz after it’s left the country. If keeping all kinds of businesses in the US is not a concern for you, I understand.
Of course, keeping biz in the US is a good thing, 101% with you. But with 90% write-offs, the sky isn’t falling I’d say. As I mentioned in a previous post, this is common in the biz world in all sorts of write-off’s aren’t allowed at 100% or close to it, or at all, and the biz world still flourishes. Everyone will adapt, the drama will end. Plus the elephant in the room I don’t hear much on is revenue from gambling is a dwindling part of the the money being made these days in Nevada and las Vegas. In data I looked up, in 2024, the Strip generated approx $21.9 billion in total revenue, with gaming revenue at roughly $5.7 billion (26%) and non-gaming sources like hotels, food, beverage, shows, and retail making up the majority at about $16.2 billion or 74% of total revenue. Statewide, Nevada’s casinos reported $31.5 billion in total revenue, with gaming at $11.3 billion (35.8%) and non-gaming sources like tourism-related activities accounting for the rest. Events, food, hotels, clubs, drinks, etc. is where it’s at. 90% vs 100% in this reality is a whisper at a 130db metal show.
This is why I love you Bob, because this subject is more important than our political beliefs. It’s how to keep enjoying what we’re enjoying at the least amount to our savings! I’m an ex casino dealer who opened Treasure Island. At the time and for the ten years I lived in Las Vegas, I hated gambling. I never won often and couldn’t stand degenerate gamblers. I’m the wheel dealer who gave a customer the finger and got fired at Treasure Island. I was not cut out for gambling as you might imagine.
As the years have gone by, I grew to miss Las Vegas because I wanted redemption for what I did. Deep in my heart I love Las Vegas, it changed every time I visited later on, and its what I love about it. I’ve told my wife that when I die, I want my ashes spread out in town. I’m sorry if I’m saying a lot, but I thought its important you know who I was to who I am now. I’ll understand if I don’t make the cut.
For the pass year I’ve been trying to find a way to come to town for less. I’m at the point now where I not longer pay for my room (or less than $100 a night). I also receive free play and sometimes food allowance. I’ll be there on July 20th to July 25 and I’m staying at two local casinos and I’m playing nothing for the room nights. I’m also coming out in October to G2E and staying at a particular local casino where the pay tables are All 99% and 98% for Four Free Nights and one night for $90, and I just became a member of their slot club and have gambled there twice and spent less than $500 total. When there is a will there is a way ! Thank you
This is all good stuff here.
And yes, the food prices alone in Vegas have just skyrocketed but I think it definitely due to more than just tariffs as a few posters already commented on.
Yes, there are business restrictions in what you can and can’t write off. But most of the restrictions are on indirect expenses. To Bob’s point, his losses are very DIRECT expenses and need to be 100% deductible. It would be like a maker of tables only being able to deduct 90% of the cost of the lumber. When you are playing at the denominations he is playing at, you’d go broke very quicky losing 10% of those direct write-offs of losses.
I’m a 25 yr AP as well. But I’m not a professional. As I aged and made more $ in my career, I lost the ability to itemize in my personal tax returns. Basically, it launched me into playing quarter VP again and moving to live poker. It does suck and does get somewhat boring but if I hit a $1 royal for $4K on a small advantage play game, the tax hit very quickly makes that not a good play, right? It wasn’t that way when I could itemize. But even back then, I got stuck with state taxes.
Good luck finding the loophole Bob, but I think you have a better chance of the law getting changed.
If you think 10% is bad, the state of Wisconsin where I live does not allow any gambling losses to offset winnings. No matter how much you have lost in a given year, you still pay state income tax on 100% of the W2G.
I would never gamble there.
That’s criminal, especially when states are also taking a cut from the front side with over taxing casino’s in the first place.
I’m WI as well. See my quarter VP take above. No choice really.
What if your losses are more significantly larger than your winnings? For example, suppose your winnings are $10,000 and your losses are $12,000. Does the 90 per cent apply to total losses or to winnings? 90 per cent of $12,000 is $10,800. So does that mean that you still have no gambling taxes to pay since $10,800 is more than $10,000? Or are you limited to 90 per cent of winnings of $10,000 which would be only $9,000 giving you still a taxable amount of $1,000?
Henry
This is the latest I’ve seen in regards to the BBB and your question.
Calculate Deductible Losses: You can only deduct 90% of your losses up to the amount of your winnings.
I have to take serious umbrage with the mistaken idea that “gambling as a business” is an “oxymoron.” It is definitely not.
Sports betting is a game of opinion. In its professional form, it has very little to do with wagering as an entertainment or as some form of auto-losing. If you are going to label sports betting as “not a business,” you may as well label all stock market transactions as “not a business.”
Given that was me throwing that term out, let me clarify. A sportsbook, a casino who provides gambling games of all sorts, an online company gambling enterprise, etc….100%, they are a business in gambling, providing a service/want to the public. What I was referring to is the gambler themselves, who just bets money, calling themselves a business by just gambling. Yes, I know, in the eyes of the IRS, they are a business, as they can potentially make a profit/loss. A professional too is another term they are called, as they can make a profit. But here’s the kicker…..it’s a stretch to me on the merit that a true business to me exists to create a product or service that society buys. Something of “value” some call it, that the public wants to buy or use. That’s where I’m coming from on the topic. Though you can perhaps argue and say, well, so and so gambler does provide something of value beyond what they can make for themselves and that is potential income that is taxed by the IRS and that taxed amount buys all sorts of wonderful things the government can use. But to me, that’s a bit silly of course, as I think the reality is the gambler is looking out for #1, looking to make money, which is fine, and enjoys the aspect of gambling, great also, but the key point…..while creating zero product or service like a traditional business does.
Sunny, there are half a dozen huge things wrong with what you just wrote. I’ll skim the surface with the obvious.
Who are you to label/judge/evaluate whether something “creates zero product or service like a traditional business does?”
How do you define product? How do you define service? How do you even define “traditional business?” The whole argument is silly and self referential in that you think your perspective is THE perspective.
First off, there is the material resource versus non-material resource aspect of this. If somebody gambles and feels differently about themselves because they get to play at being James Bond or are simply throwing off the definitions of value of the culture in which they are mired, how do you arrive at the idea that those consequences of the gambling have no value? For example, if someone is more likely to get laid because they are playing at being James Bond, that is of immense value from a sheer biological perspective. Or if their self-definition changes in some way that boosts them in certain scenarios, how do you arrive at their gambling having no value? The problem is that you are defining all resources as material, which is standard for 21st century US biases. You are ignoring the non-material. To put it in pop culture terms, you are championing the Ferengi culture versus, say, the Klingon. You are imposing your own subjective values and opinions and acting as if that is some true bottom line. It’s not necessarily.
Other cultures have had massively different priorities and values from 21st century uber-capitalist US culture. This 21st century consumerism is not the apex of human development.
“You are imposing your own subjective values and opinions”
Well, lol, of course! Yes! Most obvious! Actually beyond obvious. As you are doing stating yours.
It’s called an opinion-viewpoint, Robert. What is “wrong” to you might be “right” to me. And vice versa. Once again, an opinion. A view. Common human back and forth stuff.
It appears I hit an emotional nerve where you take this personal. So be it. That’s on you. I stand by my views and opinions. I don’t take your views personal on the matter as “right” or “wrong”. I read it, that’s you, great. Got it.
In summary, you stated your view on a matter, I did so with mine. I stand by it. It’s the point of the comment section here and on social media as a whole. I thought this was common sense knowledge.
Move on time. We can agree to disagree. Good luck with your gambling.
Secondly, the idea that games of opinion cannot be beaten is just outright incorrect. So if you’re championing the whole uber-capitalist schtick, you need to recognize that some people do actually win long-term at some aspects of gambling, whether it’s sports gambling or playing video poker. And if they do, then they are doing what’s best for them, which fits the whole uber-capitalist theme.
Dancer fits this profile.