First-time ‘no tax on tips’ deduction welcomed by casino workers, though stakeholders advocate for making it permanent

(AsiaGameHub) –   On April 16, U.S. President Donald Trump took a last-minute trip to Las Vegas—his first visit to the Silver State since assuming office last January—to highlight the success of his “no tax on tips” measure, which was included in his omnibus legislation from last July and went into effect for the first time during this tax season.

Casino dealers and staff were among the primary inspirations behind the new measure, which runs through 2028 and allows eligible workers to deduct up to $25,000 in tipped income, including casino chips. Trump, who first proposed the idea at a Las Vegas campaign rally in June 2024, has had deep ties to the gaming and hospitality industries for decades.

The 45th and 47th U.S. president previously operated casinos in Atlantic City from the mid-1980s to the early 2000s, and his current Trump Hotels brand manages eight non-gaming resorts, including one in Las Vegas. The unplanned event wasn’t held at Trump Las Vegas; instead, it took place at the non-gaming AC Hotel Las Vegas Symphony Park.

“Thanks to our tax cuts, this week, thousands of Nevada waiters, waitresses, casino dealers, bartenders, bellmen, barbers, caddies – oh, I love those caddies, they’re very good if you have the right caddy – and valets received the biggest tax refunds of their entire lives,” Trump said at the event, per the Nevada Independent. “And I just want to say, ‘You’re welcome.’”

No tax on tips: a positive step but with flaws

So far in his second term, the gaming industry hasn’t exactly embraced Trump’s financial policies warmly. His tariff increases have created uncertainty for suppliers and disrupted international travel; the Commodity Futures Trading Commission is adopting prediction markets; and the cap on gambling loss deductions for tax returns was lowered to 90%—a small yet impactful change for gamblers.

However, Trump’s no tax on tips measure is likely his most significant benefit to the industry so far, especially for tourism-reliant economies like Las Vegas that have many tipped workers. Its arrival this tax season is well-timed: visitation dropped 7.5% and air traffic fell 6% in 2025 after a record run from 2021 to 2024.

Culinary Union Local 226 is the most influential labor union in Las Vegas, representing the entire Las Vegas Strip and around 60,000 workers across Nevada. In January, the union’s Secretary-Treasurer Ted Pappageorge told iGB the measure would bring “some relief,” but the union has also criticized aspects of the deduction and protested Trump’s visit last week.

The measure’s temporary status and other issues—such as the requirement for married couples to split the $25,000 deduction—are among the union’s top critiques. Politically, Culinary has argued that Trump’s policies and clashes with foreign leaders were a key driver of the tourism slump the deduction is now trying to ease.

“When tourism slumps, Culinary Union members feel it first with less hours, schedule reductions for part‑timers, and layoffs in tipped jobs,” Pappageorge said in a statement on 1 April. “At the same time, the so‑called ‘No Taxes On Tips’ changes are temporary and deeply flawed: They penalise married tip earners, exclude many automatic gratuities, and give permanent tax cuts to billionaires while workers get short‑term relief.”

Proposed legislation aims to revamp the deduction structure

To address these criticisms, the union has endorsed the TIP Improvement Act, a federal bill filed on February 13 by Nevada Representative Steven Horsford.

If passed, the legislation would remove the measure’s temporary status and expand the deduction to $100,000 and beyond. The bill was immediately referred to the House Committee on Ways and Means (where Horsford serves) and the Committee on Education and Workforce, but it hasn’t progressed since then.

“My bill would make this relief permanent, fix the marriage penalty so families aren’t punished for filing together, allow the use of a verified taxpayer identification number so immigrant workers aren’t excluded, clarify that this deduction belongs to workers, not employers, and protect automatic gratuities,” Horsford said in a statement.

Passage is challenging, as Republicans hold a 217-212 advantage in the House—though there are now five vacancies following the resignation of three representatives this month and the death of Georgia Representative David Scott on Tuesday. With 2026 being a midterm year, elections and party lines are influencing every aspect of politics, including the no tax on tips policy.

“We got to win the midterms,” Trump said in Las Vegas last week, per the Independent. “If we don’t, these policies are going to be taken away.”

Early results seem favorable

After a slow year in 2025, Las Vegas’ economy is trending positively in 2026. In February, visitation and Strip gaming revenue both posted year-over-year gains for the first time since 2024. According to the Nevada Department of Employment, Training and Rehabilitation (DETR), the Las Vegas metro area gained 1,100 jobs in February, and the state added 1,600 hospitality jobs that month. Las Vegas’ February jobs total was 25,100 higher than February 2025, per the DETR.

Regarding the new tips policy, early outcomes also appear positive. In the final days before the April 15 tax deadline, Nevada taxpayers received an average refund of $4,193—the fourth-highest in the U.S., according to Upgraded Points. The average refund for Clark County (which includes Las Vegas) was slightly higher at $4,341.

The federal deduction isn’t exclusive to Nevada. Several other major casino states ranked in the top 10 of average refunds, with Louisiana leading at fifth place. Mississippi and Illinois followed at seventh and eighth, respectively. New Jersey placed 14th, as fears of competition from upcoming New York City casinos and the growth of the state’s iGaming industry continue to build.

Unite Here Local 54, Culinary’s affiliate union in Atlantic City, did not respond to requests for comment.