Trump’s New Bill Could Devastate Professional Gambling in the U.S.
On July 1, the U.S. Senate approved Donald Trump’s “Big Beautiful Bill,” which will limit tax deductions for gamblers starting in 2026.
How the Tax Rules for Gamblers Will Change
Currently, gamblers can deduct 100% of their losses — as long as those losses don’t exceed their winnings. Under the new law, only 90% of gambling losses will be deductible.
This means that even with a net-zero result, gamblers will owe taxes:
| Winnings | Losses | Deductible Losses | Taxable Income |
|---|---|---|---|
| $100,000 | $100,000 | $90,000 | $10,000 |
So even if a gambler breaks even, they’ll still owe taxes on $10,000 — money they never actually had.
Who Will Be Affected
The new rules will primarily impact:
- Professional poker players
- Sports bettors
- Frequent casino gamblers
- Online gambling enthusiasts
These groups rely heavily on loss deductions, and the change could eliminate their profitability entirely.
Reaction: From Capitol Hill to the Las Vegas Strip
Criticism from Nevada Lawmakers
Representative Dina Titus of Nevada strongly condemned the proposal, saying it harms both residents and visitors of Las Vegas. According to her, the bill:
- “Punishes” those who report their gambling income honestly
- Creates incentives to migrate to offshore gambling platforms
- Threatens tourism and the casino industry’s revenue
Titus pledged to propose an amendment preserving the full deduction of losses. If that fails, she’s prepared to introduce separate legislation to overturn the provision.
Industry Response
Derek Stevens, co-owner of Circa, The D, and Golden Gate casino-hotels, voiced his support for Titus. Stevens previously welcomed Trump to Circa in January, praising his stance on eliminating taxes for casino service workers — but opposes limiting deductions for players.
Many industry experts believe the new rules will damage the entire gambling ecosystem — including jobs, state tax revenues, and funding for responsible gaming initiatives.
What the New Tax Regime Could Lead To
Key expected outcomes:
- Shift of gamblers to offshore online casinos with no U.S. tax obligations
- Decline in revenues for legal U.S. casinos, especially in Nevada
- Reduced transparency in gambling income reporting
Most legal operators pay taxes, provide jobs, invest in infrastructure, and fund responsible gaming programs. A player migration to illegal platforms could cripple the industry.
What’s Next
The Senate has already passed the bill by a narrow 51–50 vote. Trump is expected to sign it into law on July 4.
If signed, the new tax rules will take effect in 2026.