For all the heat it’s drawing from gamblers, the One Big Beautiful Bill (OBBB) is looking like a tax jackpot for Las Vegas casino giants.
In recent earnings calls, MGM Resorts and Caesars Entertainment confirmed that the sweeping federal tax reform, controversial for its cap on gambling loss deductions, could save them a combined $300 million.
Both companies told investors they expect to get about $100 million or more each in tax payments as a result of these revisions tucked into the OBBB.
Where Are These Figures Coming From, And Where Is It Going?
Caesars CEO Tom Reeg told investors the bill would reduce their projected cash taxes by $80 to $100 million. That extra capital, he said, would help plug weaker-than-expected earnings from Las Vegas in Q2 and Q3.
MGM’s CFO Jonathan Halkyard reported a similar impact, calling the shift in their tax outlook “pretty meaningful,” flipping from an expected $100 million liability to an unexpected $100 million refund.
Between the two gaming heavyweights, the total financial upside could top $300 million, money that might otherwise have gone to the IRS. Instead, both operators hinted at using the extra cash for investments, shareholder value returns, and expansion opportunities, including tech upgrades and possible acquisitions.
In other words, the companies used to pay out the jackpots; now, they’re the ones hitting them.
Slot Players Get a Break Too
It’s not all bad news with OBBB, depending on who you ask. The American Gaming Association (AGA), which represents casino operators across the U.S., has voiced support for key provisions in the bill, particularly the ones that impact casino employees and slot machine play.
One long-requested update in the OBBB is the increase in the slot machine tax reporting threshold. For years, players had to fill out paperwork for any slot win over $1,200. Now, that threshold will rise to $2,000, cutting back on interruptions and improving the player experience. It’s a small but meaningful win for frequent slot players.
The bill also removes federal income tax on tips earned by casino employees, a major benefit for dealers, bartenders, and service workers across the country who often rely on tips for the bulk of their income.
But Not Everyone’s Celebrating
While casino CFOs are celebrating, professional players are still sounding the alarm over the same law.
The most controversial piece? Starting January 1, 2026, gamblers can only deduct 90% of their losses, down from the full 100% allowed under current tax law. That means if you win and lose equal amounts, you still owe taxes on imaginary “income.”
And that’s got players, especially pros, fuming.
The fear is that this change will push high-rollers toward unregulated alternatives, where tax reporting isn’t a concern and deduction caps don’t exist. Even though it affects a relatively small group of players who itemize, many in the gambling community see it as a slippery slope.
Where Do We Go From Here?
The fight over the One Big Beautiful Bill is far from over. While casino giants like MGM and Caesars are already reaping major tax benefits, they haven’t stepped out of the ring just yet. Both companies, alongside the American Gaming Association, are actively lobbying Congress to walk back one of the bill’s more controversial provisions, the 90% cap on gambling loss deductions.
Several lawmakers have already voiced support for a repeal. Representatives Dina Titus (D-NV), Guy Reschenthaler (R-PA), and Don Bacon (R-NE) have all backed efforts to restore the full 100% deduction.
But with Congress not expected to resume normal session until September, time is short. Lawmakers will have less than four months to push through any changes before the deduction limit takes effect on January 1, 2026. And in a politically divided environment, even small revisions to the bill face an uphill climb.
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