Summary
- Donald Trump's primary economic legislation, referred to as the Big Beautiful Bill, may negatively impact poker players and sports bettors.
- According to the proposed draft, deductions for gambling losses would be limited to 90%. This means that even if you incur a net loss from gambling over the course of the year, you could still be liable for taxes.
- People ranging from professional gamblers and industry insiders to lawmakers have expressed dissatisfaction.
Donald Trump is known for his rhetoric and occasional decisive action. Last week, the President introduced his Big Beautiful Bill, aiming to reverse what he described as the economic missteps of the previous administration. The proposed legislation is intended to boost the wealth of everyday Americans significantly.
Big Beautiful Bill causes a big uproar among
If you're a poker player or enjoy betting on sports, there's news that might concern you. A new bill aims to eliminate, among other things, the ability for sports gamblers and professional poker players to deduct their losses. Under current laws, if you wager $200,000 in total, win $100,000, and lose $100,000, you owe no taxes since your wins and losses cancel each other out. However, the new bill proposes capping these deductions at 90% of losses. This means you would owe taxes on 10% of your losses—for instance, $10,000 in this scenario. The Joint Committee on Taxation estimates that this change could generate an additional $1.14 billion in revenue, but the proposal has been met with disapproval from the industry and gamblers. Reactions have been mixed, with some expressing more emotion than others. Alex Kane, CEO and founder of Sporttrade, questioned the situation, while professional gambler Rob Pizzola warned the tax would negatively affect anyone who bets in the U.S. and have broader consequences for the gambling industry. Tony Dunst voiced his dissent emphatically, suggesting the proposed changes could lead to gamblers owing taxes even when they incur net losses throughout the year.
A possible legislative fix is already supposedly on its way
Dina Titus, a Democratic congresswoman from Nevada, has emerged as a vocal critic of the proposed legislation currently pending approval in the House of Representatives. She has expressed her opposition to the measure, urging her colleagues to recognize that it could ultimately harm regular Americans. Despite this, Titus is proactively seeking solutions. She has announced her initiative to develop a fix that would provide a fairer treatment of gaming losses in the tax code.
