On June 2, 2025, Republican Bobby Khan announced his campaign for Nevada’s 1st Congressional District (CD-01) seat.
And in his announcement on X, Khan included the following as part of his official platform:
“ZERO TAXES ON GAMBLING WINS”
A lot of people overlooked that one – or ignored it.
President Trump apparently wasn’t one of them.
On December 9, while flying to Pennsylvania for an economic speech, Trump was asked about the idea during a casual gaggle. His answer sounded like classic Trump.
“We have no tax on tips, we have no tax on Social Security, and we have no tax on overtime,” he said. “No tax on gambling winnings? I don’t know. I’m gonna have to think about that.”
It was not a promise. It was not a policy rollout.
But in Las Vegas, even a comment like that gets noticed.
President Trump says he’s considering eliminating taxes on gambling winnings. This would provide a massive boost to the Las Vegas economy by encouraging higher spending and drawing gamblers away from foreign/illegal markets.
It would also make Trump extremely popular in Nevada. pic.twitter.com/nb0zz4UyuS
— Las Vegas Locally (@LasVegasLocally) December 11, 2025
Why This Matters Right Now
Trump’s remark comes after Congress passed the One Big Beautiful Bill Act earlier this year. That law cut taxes on tips and overtime pay.
It also changed the rules for gamblers in a way many in Nevada did not like.
Under current federal law, gambling winnings are treated as income. Casinos issue a W-2G form for certain wins, and gamblers are expected to report them.
Losses can be deducted, but only up to the amount won, and only if the taxpayer itemizes.
Starting in 2026, the new law tightens that rule. Loss deductions are capped at 90 percent.
That means someone could break even, or even lose money overall, and still owe taxes on what the IRS calls income.
For example, a gambler who wagers heavily and ends the year slightly ahead could owe hundreds more in taxes than before. For high-volume players, it adds up fast.
Nevada’s Stake in the Fight
Nevada lawmakers and casino executives have been pushing back.
Khan’s opponent – incumbent Democrat Rep. Dina Titus – has been vocal about getting the change fixed but has been, as usual, totally ineffective.
The state’s gaming industry generates more than $15 billion a year and supports hundreds of thousands of jobs in Clark County and beyond.
Executives from major operators like MGM Resorts and Caesars Entertainment have warned that the loss cap could drive players away.
Some bettors may move to offshore or unregulated platforms that already ignore U.S. tax rules.
The American Gaming Association reports that about 60 percent of U.S. adults gambled in 2025. Thirty percent visited physical casinos. Nevada captures a big share of that traffic.
If gambling winnings became tax-free, industry advocates say it would attract more visitors to Las Vegas and Reno. It could also keep money in regulated casinos instead of pushing it underground.
Cheers, Doubts, and Eye Rolls
Reaction has been mixed. Some gamblers see it as common sense. They’re tired of paperwork and surprise tax bills after a lucky night.
Others aren’t buying it.
Critics say Trump is floating trial balloons to soften anger over the loss deduction cap.
Some question whether Congress would ever go along, especially with concerns about federal deficits.
Tax analysts warn that ending the winnings tax could cost the government more than $1 billion a year unless lawmakers find offsets.
They also argue it benefits winners more than casual players.
Politics and the Bigger Picture
For Trump – and Khan – the politics are obvious.
Nevada is a swing state. He narrowly won it in 2024. A pro-gaming tax move plays well with casino workers, hospitality unions, and frequent visitors.
For conservatives, the idea fits a broader theme. Lower taxes. Less government intrusion. Fewer penalties on people spending their own money.
Nothing is official. No bill has been introduced. No timeline has been set.
But in a state built on calculated risk, even a hint from the president can change the odds.
Trump’s comment may have been casual, but for Nevada, the stakes are real. And Bobby Khan was way ahead of the curve.
The opinions expressed by contributors are their own and do not necessarily represent the views of Nevada News & Views. Digital technology was used in the research, writing, and production of this article. Please verify information and consult additional sources as needed.
