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A Change in Plans — Maybe

Bob Dancer

Ever since the “Big Beautiful Bill” was signed into law in July, and Russel Fox appeared on Gambling with an Edge explaining that I’d have to pay income tax on 10% of my W-2Gs whether I won or lost during the year, I knew I’d have to quit gambling come January 1, 2026. 

I received more than $6 million in W-2Gs both this year and last. In 2025, I made money but would be minus after this extra tax. In 2024, I lost quite a bit of money gambling and would still have this big tax bite under the new law. No thanks. 

Since July, I’ve at least mentioned this in numerous blogs, so this decision is no surprise to any of my regular readers.

While I was in Cherokee in early December this year, my gambling partner was a fly-on-the-wall during a Zoom call with Gary Kondler, who works for the Kondler and Associates CPA firm, which specializes in taxes for gamblers. It is Kondler’s belief that if gamblers use the session method of itemizing their wins and losses, mentioned in Shollenberger vs Commissioner, the BBB tax bill isn’t such a big deal. Yes, the tax bite will increase — but not outrageously so. Your W-2Gs, whose total must still be listed on your tax form, are not relevant in how much you have to pay.

Tell me more!

This is something I want very much to be true — and there are a variety of proverbs that warn you to be very careful if something seems too good to be true. I tried to do as much “due diligence” as I could.

It turns out that Gary’s father, Ray Kondler, was a guest on Gambling with an Edge in 2013. This was when GWAE was an hour-long radio show on Thursday nights rather than a podcast, but you can still listen to this show on YouTube by searching for “Ray Kondler.” While this show ran twelve years before the BBB tax bill, when I listened to it recently, Kondler impressed me and I came to the conclusion that I would like his firm to represent me.

Also on YouTube, when I searched for “Gary Kondler,” I found that he has appeared on several gambling related podcasts since the BBB came out, and I’m still convinced I want these guys representing me.  You can listen to these podcasts as well if you like. My financial advisor has contacts with the Nevada Board of Accountancy and found out that the Kondler and Associates firm has a solid reputation. Richard Munchkin and I are interviewing him on GWAE the day this article is posted, and the podcast will probably be posted Wednesday December 24.

I’m convinced enough that I plan to hire the firm and continue my gambling career. I am not an expert in this field, and everybody’s tax situation is different. Keep in mind that I am making no recommendation for you or anybody else. 

If I’m wrong on trusting Kondler’s methodology, continuing gambling could be a very expensive decision for me. It will be a few years before anybody knows for sure, because we’re taking about the 2026-and-beyond tax years and it takes a while after returns are filed to go through the system. And while the BBB is still the law today, who knows if it will be changed along the way?

I am willing to take that risk — for myself. Whether it’s correct for you to do similarly is something you’ll have to decide for yourself.

If you write emails to me, or post responses to this column, or ask me tax questions, my response will always be “I’m not a tax expert and I’m not qualified to answer your questions.”

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Boardwalk Follies

Atlantic City, you must be so proud. Mayor Marty Small (D), recently re-elected, beat the rap on felony charges this week. The indictment against Mrs. Small is expected to be dropped. Too bad. Small had a big chance of joining the not-so-illustrious list of A.C. mayors who have gone to the slammer. Meanwhile, Boardwalk power brokers are spin-doctoring like mad that November’s casino grosses weren’t so bad (for most of the gambling houses) and that Atlantic City is still relevant in light of three oncoming New York City megaresorts. The argument is that NYC can’t duplicate what the Boardwalk has to offer. What would that be? Cigarette smoke?

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A Tale of Two Atlantic Citys

It was the best of times … for Borgata, Hard Rock Atlantic City and Ocean Casino Resort. It was the worst of times for everyone else. Borgata takings rocketed 25% to $72 million, outpacing everyone else. Hard Rock Atlantic City was up 2% to $45 million and Ocean Casino leapt 14.5% to $39 million. The only other casino to hold its own was Harrah’s Resort, flat at $18.5 million. Caesars Atlantic City plunged 24% to $12.5 million and Tropicana Atlantic City fell 4.5% to $16 million. In other words, it took Caesars Entertainment three casinos to make slightly more than Hard Rock did.

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Bobby Vegas — Going to Vegas, Finally!

Bobby Vegas: Friends Don’t Let Friends Play Triple-Zero Roulette

Well, ya can’t keep a good scuffler down forever. If ya can’t kill me, I’ll eventually be back in Vegas.

After four surgeries (two failed), three hospitalizations, eight trips to the ER, months (ouch!) of catheters, and constant antibiotics, I’m back!

Actually, I’ve been running around for months, but out of an abundance of caution (and that I ended up in the hospital in Vegas twice) I’m there now.

It’s Golden Week, the gap week when rates drop 75% after the 100,000 cowboys and cowgirls from NFR leave town and before Christmas. It’s Bobby Vegas time and I’m happy to report it’s another one week in Vegas for $425. Total.

Other than kickin’ it at the Pinky Ring, I’m staying well away from the Strip, bunking with my friends at Downtown Grand two nights (50% off and reduced resort fee) and two nights comped (weekend) for a total of $175, then moving to Rio using my LVA 25 coupon.

I stay in the Gallery tower at DG and require a medical fridge. I get a tub to soak in as I’m dancing hard several nights and need to stay limber. Update: I was concerned, hearing Freedom Beat at DG closed, but am happy to report it’s just a remodel. Phew!

In between, there are many places to eat nearby.

Siegel’s at El Cortez using your half-off LVA coupon and Wednesday is half-off for seniors; try the roast half-chicken. Awesome. The new Binion’s food hall right across from DG. BERRY good! Pizza Rock is just a stone’s throw away. Four Queens where your play gets generous comps as well as birthday deals and again LVA MRBs. Triple George ain’t too shabby either.

Calling the Rio, avoid the AI answering (“Live agent, please”). Though you’ll be on hold for 15-30 minutes, the live agent is worth the wait to get their $57 resort daily fee waived. I booked four nights Saturday through Tuesday for … drumroll … $133.33.

I also discovered that on Priceline, if you prepay, it’s half-price, so my car is $125 — for a week, from Hertz!

My flights on Southwest were free on points.

STRIP WARNING: So you got a Strip room comp? You’re paying the resort fee and parking ($75-$100)? And you ordered breakfast in your room ($100)? And grabbed some Hennessy from the mini bar and now that COMPed ROOM cost you $350 a night!?

All they do is drain you dry. And “Where have all the good Strip video poker games gone?” Long time passing (or now $25). When will they ever learn? WE INTERRUPT THIS PROGRAM TO GIVE YOU THE ANSWER. Never

Stick with Downtown (Plaza, DG, Four Queens), Rio, M, South Point Palace Station, Rainbow, and Emerald Isle and for god’s sake, leave the strip to … NOT YOU.

Oh and merry ChanuKwanSolstMas. There. I covered everyone.

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Before New Year’s Eve

Bob Dancer

Three weeks ago, I addressed end-of-year considerations about emptying your slot club accounts — or not. Today I’m addressing a different, albeit related, subject. And that subject is reaching a specific tier level.

Some casino slot clubs have tier levels — silver, gold, platinum, or whatever. Often these are annual awards earned January 1 through December 31, although they don’t have to be. 

I was prompted to look at this for personal reasons relating to Caesars Rewards. As I wrote this, I was planning one last trip to Harrah’s Cherokee in order to reach some not-well-known goals — and I needed to plan accordingly. It may well be my last trip to Cherokee, ever. The planning I’m doing may be applicable to some of my readers. Some of this is speculation because as I write this, I haven’t received the December mailer yet.

If you play at a Harrah’s or Caesars property, you know that Seven Stars is the highest tier level and that level requires 150,000 Tier Credits (TCs) per year. For slot and video poker players, these TCs are earned in one of three ways: playing the machines, receiving bonuses for reaching predetermined daily levels, and TC multipliers — which are promotions occurring periodically throughout the year. In the last few months of the year, TC multipliers are more common as players strive to reach the next tier.

Making it to Seven Stars is huge — with their $1,200 retreat, five $100 dinners, highly discounted cruises, and some other goodies. Ending the year with slightly less than 150,000 credits is a big mistake. But we’re played a lot of high stakes video poker at several Caesars properties, mostly Reno and Cherokee, and we’re far beyond the 150,000 level. For the past few years, we’ve reached this level before the end of February.

Most players don’t realize that you can earn quite a bit more than the 150,000 TCs required for Seven Stars, and get rewarded for doing so. For every 250,000 TCs earned, you get one Seven Stars Experience Credit (SSEC), which may be redeemed for a variety of things. For Bonnie and me, we redeem each of these SSECs for $450 in free play at either a Las Vegas or Cherokee property.

While the following numbers aren’t exact, they’ll give you an idea of how I went about my decision making — and may well be applicable to you in a similar situation. I planned a 10-day trip. At the start of the trip, Bonnie needed 90,000 TCs to reach the next SSEC and I needed 260,000 TCs. (Actually, I only needed 10,000 but I figured I could complete that and make it all the way through the next one as well.) There was one TC multiplier where you received 5x TCs up to 25,000 points. And I can comfortably play about $180,000 per day, split between Bonnie’s card and mine. At Cherokee, $180,000 played on video poker will result in 18,000 TCs. I play primarily video poker, but also some slots, which accrue TCs twice as fast.

For the TC multiplier, I don’t know if the bonus is 25,000 or only 20,000 and they count the 5,000 I’d earn as part of the 25,000. I’ve seen it both ways at various properties and sometimes the people at the booth don’t understand the difference and so can’t give precise answers. At Harrah’s Cherokee, they usually have one or more high level people at the booth, so I expect to get accurate answers there. But for planning purposes, I’ll assume the “worst case,” which is that I only receive 20,000 extra TCs. I don’t want to assume the best and possibly miss the next SSEC (and my $450 bonus) by 5,000 TCs.

For normal daily play there, earning 5,000 TCs ($50,000 coin-in) per day is pretty standard because doing that earns a 10,000 TC bonus. Here, though, Bonnie only needs 90,000 TCs and the multiplier day she’ll earn 35,000 (the 5,000 played, 20,000 multiplier bonus, and the daily 10,000 bonus). That will leave her needing “only” 55,000 other TCs to accumulate over nine days of play. So, I’ll play on her card 5,000 TCs for four days and skip playing on her card the rest of the trip.

On my card, ten days of 15,000 TCs (earning at least 5,000 daily with the 10,000 per day bonus), plus the 20,000 TC multiplier bonus means 170,000 out of the 260,000 needed. Earning an extra 8,000 TCs per day for the five days I’ll play on Bonnie’s card earns me an extra 40,000, and earning an extra 13,000 on the five days I don’t play on Bonnie’s card gives me an additional 65,000 TCs. This adds up to 285,000 — which is more than the 260,000 needed. Good. I can always play less.

They have Next Day Bounce Back (NDB)at Harrah’s Cherokee, and I think the current rate of free play is earned at 0.375%. I will try to earn my points by the ninth day. I don’t want to earn it for the 10th day I play because our plane leaves before the NDB is available for me to play. Playing $180,000 coin-in on a day when I’m not getting NDB costs about $675 in EV. Doing that to earn $450 in free play doesn’t make sense. If everything goes according to plan, I’ll have met my goals before the 10th day and so I won’t have to play at all that day. It’s also possible that playing $50,000 that last day and earning the 10,000 TC bonus will be required, but that’s only around -$165 in EV so it remains an option. Or, better, maybe $25,000 will be enough earning half the amounts as $50,000. That will only cost $80 in EV for missing out on NDB.

NDB on your card lasts for 30 days there, so if I were a local and planning to come back within a month, I could play right up to the last minute. But since I’m not planning on coming back, I sit out playing on the last day of my trip — other than picking up NDB from the day before and any other free play that might be available. If the mailer has weekly free play starting on Monday, for example, I might well plan my departure for a Monday.

While this trip actually ended the first week of December, and I have three additional weeks to earn the SSEC goals in Las Vegas, there is a Great Gift Wrap Up that ends December 14 where every Reward Credits earned throughout the year at any of the Caesars or Harrah’s properties counts towards gifts (or free play), I want all of my play done before that. 

My lesser play on Bonnie’s card compared to mine will mean she’ll receive lesser offers down the road from Cherokee than I will. But unless the tax law changes, we won’t be going there anymore so how big the offers are is irrelevant.

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Much Ado About Nothing

We’ve been giving this story a wide berth but … someone perspicacious in the White House press corps noticed the yawning chasm between the symbolism of Donald Trump making a stump speech at Mount Airy Resort and the fact of his having signed into law an onerous tax increase on gamblers. The latter was part of a budget enacted in haste, to be repented at leasure. (To be crystal clear, the gambling-tax hike was the evil handiwork of GOP Sen. Mike Crapo.) As might be expected, Fox Business tried to spin the presidential response as a major policy shift. The truth is more mundane.

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In the Bleak Midwinter

Casinos in Illinois nudged up a point last month, garnering $155 million. Take away underachieving Fairmount Park ($1.5 million) and they were flat with November 2024. Newfangled Hollywood Joliet continued to tear up the marketplace, vaulting 51% to $11 million. Three casinos in Chicagoland were reeling—and we’re not referring to their slot machines. Market leader Rivers Des Plaines got walloped 13.5%, spiraling down to $37.5 million. Bally’s Casino downtown didn’t have a chance to gloat, also getting clocked 13.5% to $8.5 million. Even so, Bally’s Corp. and Gaming & Leisure Properties Inc. remain (delusionally?) convinced that $2 billion Bally’s Chicago will be a barnburner.

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