Eliminate Federal Taxes on Gambling Winnings

Bobby Khan’s Plan to Eliminate Taxes on Gambling Winnings

Boosting Casino Revenue, Strengthening the Economy, and Freeing Gamblers from Over-Taxation

Gambling is one of the largest industries in Nevada and across the country, yet the government treats it as a cash cow—taxing winners, overregulating casinos, and creating unnecessary bureaucratic hurdles that slow down business. It’s time to end federal taxation on gambling winnings.

Eliminating taxes on gambling would:

• Put more money back into the hands of players
• Boost casino revenue and tourism
• Reduce unnecessary regulations and paperwork
• Prove that government waste means we don’t need to tax everything

The federal government wastes billions every year—we don’t need to tax gambling winnings to function. It’s time to let players keep what they win.

The Problem with Gambling Taxes

1. It Discourages Gambling & Hurts Casino Revenue
   • When gamblers know their winnings will be heavily taxed, they’re less likely to spend big at casinos.
   • In states like Nevada, New Jersey, and Pennsylvania, the casino industry is a key driver of jobs, tourism, and economic growth—taxing winnings only takes money out of the local economy.
   • Eliminating taxes on winnings will encourage more gambling, increasing overall spending in casinos, hotels, restaurants, and entertainment.
2. It Creates Unnecessary Regulation & Burdens for Casinos
   • Under current IRS rules, casinos must stop operations to process tax paperwork for even small jackpots.
   • Every time a slot machine jackpot exceeds $1,200, casinos must:
     • Stop the game
     • Call an employee to do paperwork
     • Process tax forms for the player
     • Slow down the entire gambling floor
   • This wastes time, reduces casino efficiency, and frustrates players who have to wait for payouts.
   • By eliminating taxes on winnings, we remove these unnecessary regulations, allowing casinos to operate more efficiently and keep customers playing.
3. The Government Wastes More Money Than It Collects
   • The federal government collected $3 billion from gambling taxes in 2022—but spent over $6 trillion in the same year.
   • This means gambling tax revenue is less than 0.05% of government spending—a drop in the bucket.
   • We don’t need to tax gambling winnings to fund the government. Cutting government waste would easily offset any lost tax revenue.
4. It’s a Double Tax on Money That’s Already Been Taxed
   • Every dollar a gambler uses to play has already been taxed through:
     • Income tax (on their paycheck)
     • Sales tax (on purchases before going to the casino)
     • Hotel tax (for tourists visiting gambling cities)
   • Taxing their winnings is just another layer of government greed.
   • If a person spends their paycheck on stocks and makes a profit, they get tax breaks—but if they gamble and win, they’re taxed immediately? That’s unfair.
5. It Unfairly Targets Small-Time Gamblers While High-Rollers Find Loopholes
   • Professional gamblers can deduct losses and use tax write-offs—but casual players can’t.
   • A tourist who wins $1,500 on a slot machine gets taxed immediately, while a high-roller betting millions in private games finds loopholes to avoid taxes.
   • This law punishes everyday Americans while letting the ultra-rich work around it.

The Plan: Eliminating Taxes on Gambling Winnings

1. Completely Eliminate Federal Taxes on Gambling Winnings
   • No more IRS withholding on jackpots, poker tournaments, or sports betting.
   • Players keep 100% of their winnings, just like stock market traders do.
   • Helps boost the economy by encouraging more gambling, tourism, and spending.
2. Remove the IRS Paperwork & Regulations on Casinos
   • No more stopping play for $1,200+ slot machine jackpot tax forms.
   • Reduces IRS involvement in casino operations and customer transactions.
   • Allows casinos to operate more efficiently—keeping players in action instead of waiting on paperwork.
3. Protect Tribal & State Gaming Revenues
   • Many states and tribal casinos depend on gambling revenue to fund local projects.
   • Removing federal taxes means more money stays within states and tribal communities, boosting local economies.
4. End Gambling Tax Discrimination – Treat Winnings Like Stock Market Profits
   • Investors can sell stocks and not pay capital gains tax unless they hit a threshold.
   • Gamblers should have the same freedom—no taxes unless winnings exceed $50,000 per year.
   • This removes the unfair tax treatment of casual players compared to Wall Street investors.

The Benefits of Eliminating Gambling Taxes

1. More Money in the Economy = More Jobs & Growth
   • Players will spend more if they keep all their winnings.
   • This leads to higher profits for casinos, hotels, restaurants, and businesses in gambling destinations.
   • A stronger casino industry means more jobs and higher wages for casino workers.
2. Tourism Will Skyrocket in Gambling Hubs
   • If the U.S. eliminates gambling taxes, it will become the world’s best place to gamble.
   • More international high-rollers and tourists will flock to Las Vegas, Atlantic City, and tribal casinos.
   • This will generate billions in new spending, far outweighing any lost tax revenue.
3. Casinos Will Operate More Efficiently
   • No more slot machine stoppages for small tax paperwork.
   • No more IRS slowing down payouts.
   • Faster play = more revenue = more business growth.
4. The Government Doesn’t Need the Money
   • The federal government wastes more money on bureaucratic nonsense than it collects in gambling taxes.
   • Eliminating this tax won’t impact essential services—but it will give Americans more freedom over their earnings.
5. It’s the Right Thing to Do
   • Your winnings are YOUR money.
   • You shouldn’t be penalized for being lucky or having skill.
   • If stock traders, crypto investors, and real estate moguls get tax breaks, so should gamblers.

The Bottom Line: Let Gamblers Keep Their Winnings

Gambling taxes hurt players, slow down casinos, and add unnecessary government control.

My plan eliminates federal gambling taxes—putting more money into players’ pockets, growing the casino economy, and proving we don’t need to tax everything for the government to function.

No more IRS tracking your winnings. No more stopping play for tax paperwork. Just real freedom for gamblers and businesses alike.

It’s time to roll the dice on real economic freedom.

Bobby Khan for Congress – Fighting to Keep YOUR Money in YOUR Hands.