Gamblers Lose Big as Trump’s First Major Bill Passed

Gamblers Face New Tax Burden Under Trump’s Economic Overhaul

The US House of Representatives approved Donald Trump’s sprawling spending plan Thursday, marking the US president’s first major legislative victory of his second term. The passage of the “big, beautiful bill” is a major victory for Trump but a big loss for gamblers – especially pros – who could find themselves taxed on phantom income.

The Impact on Professional Gamblers

Dubbed the “big, beautiful bill” in early planning sessions, the legislation locks in Trump’s core political and economic priorities – cementing tax cuts for individuals and businesses, while gutting major climate and social spending programs. But buried within the bill is an amendment that is causing alarm among professional gamblers – and it’s anything but beautiful.

The Phantom Income Taxation Conundrum

Rather than seeing the benefits of those tax cuts, they could face taxes on income that doesn’t actually exist, and it could have a devastating impact on their livelihoods. ‘’

Gamblers can deduct losses from their winnings provided those losses don’t exceed their total gambling income. But under the new amendment, only 90% of those losses will be deductible, meaning even gamblers who break even could end up with a sizable tax bill.

A Breakdown of the New Tax Rule

Under the existing rules, a gambler who breaks even in a year by winning $100K and losing $100K pays nothing because the losses offset the winnings. Under the new law, they will be required to pay tax on $10K, as only $90K of their losses can be deducted.

The Consequences

That means it’s going to be harder to turn a profit, placing a huge burden on an already volatile profession. “This new amendment to the One Big Beautiful Bill Act would end professional gambling in the US and hurt casual gamblers, too,” poker pro Phil Galfond wrote on X, June 2. “You could pay more in tax than you won. Contact your representative quickly.”

A Possible Fix?

Nevada Rep. Titus Preparing ‘Fix’
Yesterday, U.S. Rep. Dina Titus (D) said she was already preparing legislation to walk back the tax burden on gamblers in the event that the bill was successful.

“Buried within the BS Republican Budget bill is a provision that harms poker players and those who gamble by limiting loss deductions. I’m working on a legislative fix that fairly treats gaming losses in the tax code,” she wrote on X.

The Industry’s Response

Titus says that the new measure will be bad for the gambling industry because it risks pushing skilled players out of the regulated US markets, encouraging them to use offshore platforms that don’t provide the same consumer protections or generate tax revenue for the US government. “Are you tired of winning yet?” a jubilant House speaker Mike Johnson asked after the vote, echoing Trump’s famous 2016 campaign riff: “We’re going to win so much, you may even get tired of winning.”

Conclusion

For gamblers, though, “winning” may soon become a distinctly unfamiliar feeling.