Starting next year, gamblers will only be able to deduct 90% of their gambling losses, unlike the previous 100% deduction
A new tax policy introduced under President Donald Trump’s “big beautiful bill” has triggered sharp criticism from professional gamblers and the casino industry.
Starting next year, gamblers will only be able to deduct 90% of their gambling losses from their winnings. Previously, they could deduct 100% of losses, allowing them to report zero taxable income when breaking even.
Under the new rule, a gambler who wins and loses $100,000 a year—making zero net income—would still owe taxes on $10,000.
If losses exceed winnings, the player will still be taxed and can deduct only 90% of the losses. This change is expected to generate $1.1 billion in federal revenue by 2034.
The backlash has been swift. Professional players argue it’s nearly impossible to make a living under such conditions.
FAIR BET Act gains bipartisan support
The American Gaming Association, which initially supported parts of the broader legislation, now backs the FAIR BET Act, introduced by Representatives Dina Titus (D-NV) and Ro Khanna (D-CA).
The bill seeks to restore the full deduction.
Industry leaders warn that the change could push gamblers toward illegal markets and reduce legal play, hurting tourism and jobs in the $72 billion gambling industry.