Big Beautiful Bill Includes Big Beautiful Problems for Professional Gamblers
By Robert Linnehan in Sports Betting News
Published:
- President Donald Trump’s (R) recently passed Big Beautiful Bill will penalize professional gamblers
- The new legislation will only allow professional gamblers to deduct 90% of their losses
- Rep. Dina Titus (D-Nevada) is hoping to propose legislation to counteract the new tax rules
President Donald Trump’s (R) recently approved One Big Beautiful Bill may cause big beautiful headaches for professional gamblers and sports bettors across the country.
Trump’s sweeping legislation passed the House of Representatives this afternoon by a narrow 218-214 vote, after passing the Senate on Tuesday by an even closer 51-50 vote. Trump is expected to sign the bill into law on July 4.
Included in the massive piece of legislation is a new tweak to the Internal Revenue Code, which will only allow professional gamblers to deduct 90% of their losses in a year, down from 100%.
Legislation May Severely Hamper Gambling Industry
The tax deduction changes will limit profits for professional gamblers in the U.S., and maybe even require those who came out on top to pay more in taxes than they won in a single year.
Under the new legislation, if a professional gambler wins $1,000,000 in a single year, but also loses $1,000,000, they will only be able to deduct $900,000 in losses from their taxes.
They will have to pay taxes on the $100,000 they cannot deduct, as if they had won the money.
Assuming a 24% tax rate, a professional gambler would have to pay an additional $24,000 in taxes.
A gambler who makes $5.2 million, but loses $5 million, would have to pay taxes as if they had won $700,000, rather than the actual $200,000 they won during the year.
Professional gamblers and sports bettors decried the change, saying it will severely hamper the industry and unfairly punishes those who report their earnings to pay their fair share in taxes.
AGA Hopes to ‘Further Modernize the Tax Code’
The American Gaming Association released the following statement regarding the passage of the bill:
“We commend congressional leaders on the passage of the One Big Beautiful Bill Act. Our industry’s ability to sustain quality jobs and deliver economic benefits is significantly enhanced by the tax policies of OBBBA that support consumers, encourage business innovation and investment, and strengthen U.S. competitiveness. We look forward to President Trump’s expected signing and will work closely with Congress in the coming months to address the changes to wagering deduction losses and further modernize the tax code.”
New Legislation Coming?
Despite the bill passing and its changes for gambling deductions, Rep. Dina Titus (D-Nevada) noted on her social media channels that she is working on legislation to reverse the “unfair anti-gaming tax provision.”
“It pushes people into the black market if they don’t do regulated gaming because they have a tax disadvantage. The black market doesn’t pay taxes, it isn’t regulated, doesn’t help with problem gaming. It’s bad for the industry and it’s bad for the player,” Titus said during an appearance on News Nation.
Titus shared no details on the potential legislation she may introduce.
Regulatory Writer and Editor
Rob covers all regulatory developments in online gambling. He specializes in US sports betting news along with casino regulation news as one of the most trusted sources in the country.
