Oregon tribes that operate casinos are pushing back hard against a proposal in the Senate Finance Committee to eliminate the deduction for gambling losses. The Senate sponsors seek to earmark the extra money to address the high cost of college.
The two issues are linked. The proposal would allow students to deduct part of college tuition and fees and make up the loss of that money by nipping the gambling deduction. This would put the state at odds with the IRS, which allows gamblers to subtract their losses from their winnings and pay taxes on the net.
Oregon has followed the federal approach up until now. Now sponsors of the bill take the tack that not allowing losses to be deducted subsidizes gambling.
Supporters include universities and activists for higher education. Opponents include the Oregon Tribal Gaming Alliance and the 5000-member Confederated Tribes of Grand Ronde, who own the state’s largest casino.
The tribe presented documentation to support its arguments that the bill would discourage regular slot players. It noted that 50 percent of the casino’s revenues are borne by 2 percent of the players.
Lobbyist Justin Martin told the Willamette Week, “Nobody will gamble if they can’t write off their losses. This bill is terrible for Indian country.”
