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Source/Full Story - GamingAmerica'
The new tax law, signed by President Trump, permits a 90% deduction of gambling losses up to the amount won.
Key points:
- A provision in the “Big Beautiful Bill” allows only 90% of gambling loss deductions on people’s tax returns
- Professional gamblers are worried this could harm the US gaming industry if not reversed
Federal lawmakers have recently blocked legislation that would reverse a change on gambling tax revisions,
according to an Associated Press report.
Under the new tax law, people would be allowed to deduct only 90% of their gambling losses up to the amount they have won,
a provision that would go into effect for 2026. The previous allowance was a 100% loss deduction up to the amount players had won.
The new tax law, signed last week by President Donald J. Trump, contains more than 900 pages. The current provision is projected
to generate more than $1.1bn in tax revenue over eight years, the Associated Press reported.
However, professional gamblers have warned this change in legislation “could be the end of the industry.”
Professional poker player Phil Galfond recently echoed this concern on social media before the bill had passed by saying,
“This new amendment to the One Big Beautiful Bill Act would end professional gambling in the US and hurt casual gamblers, too.”
According to the AP report, Nevada Sen. Catherine Cortez Masto has pushed for unanimous approval of a bill that would
roll back this provision. However, Indiana Sen. Todd Young raised objections, which has stalled this proposal.
Sen. Cortez Masto explained to the Associated Press this change to gambling deduction allowances was not on many senators’ radars.
“My understanding is many Republicans, many Democrats did not even know it was part of that process,” she told the AP.
The new tax law, signed by President Trump, permits a 90% deduction of gambling losses up to the amount won.
Key points:
- A provision in the “Big Beautiful Bill” allows only 90% of gambling loss deductions on people’s tax returns
- Professional gamblers are worried this could harm the US gaming industry if not reversed
Federal lawmakers have recently blocked legislation that would reverse a change on gambling tax revisions,
according to an Associated Press report.
Under the new tax law, people would be allowed to deduct only 90% of their gambling losses up to the amount they have won,
a provision that would go into effect for 2026. The previous allowance was a 100% loss deduction up to the amount players had won.
The new tax law, signed last week by President Donald J. Trump, contains more than 900 pages. The current provision is projected
to generate more than $1.1bn in tax revenue over eight years, the Associated Press reported.
However, professional gamblers have warned this change in legislation “could be the end of the industry.”
Professional poker player Phil Galfond recently echoed this concern on social media before the bill had passed by saying,
“This new amendment to the One Big Beautiful Bill Act would end professional gambling in the US and hurt casual gamblers, too.”
According to the AP report, Nevada Sen. Catherine Cortez Masto has pushed for unanimous approval of a bill that would
roll back this provision. However, Indiana Sen. Todd Young raised objections, which has stalled this proposal.
Sen. Cortez Masto explained to the Associated Press this change to gambling deduction allowances was not on many senators’ radars.
“My understanding is many Republicans, many Democrats did not even know it was part of that process,” she told the AP.