Red Rock Resorts (NASDAQ: RRR) executives believe the no tax on tips policy floated during the 2024 presidential campaign could juice the Las Vegas economy by as much as $200 million.

That idea was originally floated by President-elect Donald Trump and later embraced by his Democratic opponent, Vice President Kamala Harris. The proposal may have been catalyst behind Trump winning Nevada, becoming the first Republican presidential candidate to do so in two decades. He won the state by 3.1%, or nearly 47,000 votes, according to NBC News data.

We’ve looked at some economic analysis, not — I don’t know if anything has really been published on it,” said Red Rock Vice Chairman Lorenzo Fertitta on the company’s third-quarter earnings conference call last Thursday. “We think it could add somewhere in the neighborhood of about $200 million a year to the local economy here, which obviously we would benefit from.”

The Culinary Union, which represents hospitality workers, backed Harris in the election and has thrown its support behind scrapping taxes on tips.

Eliminating Taxed Tips Could Be Boon for Red Rock

Some experts believe implementing elimination of taxes on tips could be difficult to the point that the policy doesn’t come to fruition. They cite issues such as many tipped workers being in low income brackets where they’re not subject to much federal income tax to start with and the loss of revenue at a time of high deficits as among the reasons why the idea could stall.

Looking at the brighter side of the scenario — the one in which the Trump Administration successfully pushes Congress to erase levies on tips — Red Rock could be a prime beneficiary. All of the operator’s gaming venues are in the Las Vegas Valley, meaning many of its most dedicated customers are hospitality workers from other properties.