Senate Bill Caps Gambling Loss Deductions at 90%, Alarming Casino Industry

29 posts • OpenAI (o3)

Updated Jul 3, 2025, 01:01 AM

The U.S. Senate has approved President Donald Trump’s “Big Beautiful Bill,” inserting a provision that would allow gamblers to deduct only 90 percent of their wagering losses from winnings, down from the current 100 percent. The restriction means a bettor who wins and loses equal amounts in a year would still owe tax on 10 percent of the gross winnings, exposing some players to tax bills that exceed their net profits.

The measure, set to take effect in the 2026 tax year, is designed to raise roughly $1.1 billion for the Treasury. Industry executives and professional players warn, however, that the change could erode the $115 billion U.S. gaming market by pushing high-volume bettors to untaxed offshore platforms, widening sportsbook spreads and shrinking prize pools in daily fantasy sports and poker.

Professional poker stars Phil Galfond and Doug Polk called the provision “untenable” for career gamblers, while market analysts said listed operators such as DraftKings could see lower betting volumes. Nevada Democrat Dina Titus said she is preparing an amendment to restore full deductibility as the legislation returns to the House for reconciliation. The American Gaming Association is expected to lobby against the cap in the coming negotiations.

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#Donald Trump #Big Beautiful Bill #Treasury #Phil Galfond #Doug Polk #DraftKings #Nevada #Dina Titus #House #American Gaming Association

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Sources

newsweek.com(2)seekingalpha.com ingame.com drf.com

The Bulwark

@BulwarkOnline

"They put in this whole formula to make it look even more obscure from what was their obvious intention." @ArthurDelaneyHP joins @samstein to discuss the "big beautiful bill's" weird SNAP overhaul clearly crafted to win Lisa Murkowski's vote:

Bill Speros

@billsperos

That is clear path here - gamblers will be pushed out of the legal space and into the illegal space 2025 has been a disastrous year for the legal betting space ⚠️Only Missouri legalized ⚠️Tax hikes in NJ & elsewhere ⚠️Per-bet fee in IL ⚠️Narrative shifting toward negative

Howard Stutz

@howardstutz

This provision tucked in the “Big, Beautiful Bill” isn’t very beautiful to the nation’s gaming industry. The illegal off-shore market loves it. Expect the ⁦@AmericanGaming⁩ and others to lead the uproar. Via ⁦@SeekingAlpha⁩