Massive Proposed Legislation to Reduce Casino Taxes, Enhance MGM and Caesars' Profits by $300 Million
In the vibrant city of Las Vegas, two of the most prominent names in the gambling industry, MGM Resorts and Caesars Entertainment, are set to reap significant financial benefits from a recent tax law change. This alteration is part of the One Big Beautiful Bill (OBBB), a sweeping federal reform that has sparked controversy among gamblers.
The OBBB notably alters gambling loss deduction rules, capping gamblers' deductible losses at 90% of winnings starting January 2026. This change has raised concerns among gamblers, but for MGM and Caesars, it means a substantial reduction in their federal cash tax liabilities.
Executives from both companies have reported expected combined tax savings of about $300 million. Caesars CEO Tom Reeg stated that the bill will reduce projected cash taxes by $80 to $100 million, while MGM’s CFO Jonathan Halkyard confirmed a similar effect, noting a shift from a projected $100 million tax liability to an expected $100 million refund.
These savings could potentially allow these companies to reinvest in technological upgrades, pursue acquisitions, reduce debt, return value to shareholders, or expand their facilities and operations, thus improving their competitive and financial standing.
The changes also benefit slot players and tip-dependent workers, as the OBBB raises the IRS reporting threshold for slot machine jackpots from $1,200 to $2,000, reducing regulatory burdens on casinos and gamblers. However, this specific change has not yet been implemented or confirmed by the IRS and awaits regulatory updates.
Meanwhile, in the world of iGaming content creation, Lucas Dunn continues to make waves. With over 8 years of experience, Lucas is a key figure in the industry, specialising in game and casino reviews, industry news, blogs, and guides. His articles are based on proven data and tested insights, and he is an avid advocate for responsible play. His aim is to educate readers on the best gambling approaches, focusing on empowering players to make informed choices.
As the gambling landscape in Las Vegas and beyond continues to evolve, the impact of these tax changes will be closely watched. Stay tuned for more updates on this developing story.
In the Las Vegas casino-and-gambling scene, MGM Resorts and Caesars Entertainment anticipate substantial reductions in federal cash tax liabilities due to changes in gambling loss deduction rules from the One Big Beautiful Bill (OBBB). These changes are expected to enable the companies to reinvest in casino-games, technology, acquisitions, debt reduction, shareholder returns, or casino facility expansion. Meanwhile, in the iGaming world, industry expert Lucas Dunn continues to shape the landscape with his focus on game and casino reviews, news, and responsible play advocacy.
