Faced with the gambling provision of the One Big Beautiful Bill tax and spending bill, some gamblers are reportedly snapping up losing lottery tickets on eBay.
The tax change went into effect in January and allows gamblers to deduct only 90% of losses. The ramifications of the tax provision were first highlighted by poker pros. The law has led to semi-retirement for some high-stakes tournament poker players like Erik Seidel.
Now, some gamblers looking to claim even more losses can purchase lottery tickets for a “paper trail” of additional losing wagers. However, the method may not square with the IRS. Those found to have employed the lottery losses plan could run afoul of federal tax law.
“This is a way to offset your taxes – clearly tax fraud,” University of North Carolina Kenan-Flagler Business School professor Jeffrey Hoopes told Fortune. Hoopes also serves as research director of the UNC Tax Center.
“There’s lots of ways to commit tax fraud. This is just an interesting one, and usually you don’t buy it on eBay, so it’s an interesting example.”
Garbage Sack Full Of Tickets
A quick search of eBay yields numerous entries for losing tickets. As of Monday, gamblers could buy a stack of 3,000 losers for $228. They could purchase 19 pounds of expired New York scratch-off tickets for $125.
On a smaller budget? One listing has $5,000 in losing $50 Ohio scratch-off tickets for $50. Another listing simply details used Mega Millions tickets for sale at a price of $130, with a picture showing a garbage sack full of the paper entries.
Some listings say the tickets can be used as “tax write-offs” or “tax deductions.” While most tax filers take the standard deduction, some higher-stakes players itemize losses.
This method brings more IRS scrutiny. Filers must retain a diary of winnings and losses, receipts, tickets, statements, or other records attesting to the veracity of their tax reporting.
Some gamblers may be tempted to adjust their reporting with losing tickets, bringing home winnings while not having to pay taxes on at least some of that total.
Site Tries To Weed Out Listings Promising Tax Write-Offs
Despite that, Hoopes and eBay both note that some buyers may simply be looking to collect the losing tickets. The company screens for listings promising a tax write-off, but some references get through the site’s protocols.
“Expired lottery tickets with collectible value may be listed on eBay as long as the listing clearly states the item is expired and is permitted for sale under local law” an eBay spokesperson told Fortune.
“Listings that promote potentially improper uses of these items are not allowed and will be removed.”
The company says that listings violating its policy are removed from the platform. For those attempting to use the tickets to offset losses, there is some considerable risk. Federal tax evasion is a felony. Those found guilty can spend up to 5 years in federal prison, with fines reaching $100,000 for individuals. Violators must also pay all taxes owed and the costs of prosecution.
The gaming industry continues to grow in the U.S. The industry reported record-breaking casino revenue of $783.6 billion in 2025, a 9.1% increase from 2024, according to the American Gaming Association.
Tribal gaming revenue hit a record $46.2 billion in 2025, a year-over-year increase of 5.3%, according to the National Indian Gaming Commission.
Recently, a Las Vegas tax professional outlined how much each player at the World Series of Poker final table would lose in taxes. California-based Jamie Shaevel lost the most by percentage, with 50.4% of his $1.5 million in winnings for finishing in seventh place.
