President Donald Trump’s “One Big Beautiful” bill included provisions that could greatly increase a gambler’s tax bill. However, a Nevada congresswoman is introducing a bill to nullify the provision.
Rep. Dina Titus hopes to eliminate the tax addition included in the Senate version of the bill, which Trump signed. Under the bill, gamblers can only deduct 90% of their losses from winnings.
The change would make online poker, and most other games available at online casinos, unbeatable for professionals. Additionally, recreational players could owe taxes without actually winning any money.
“This anti-gambling provision in the BS Republican budget screws over folks who live (in) and visit my district, the casino capital of the world,” said Titus, who co-chairs the Congressional Gaming Caucus. “This is just another attack on gaming and tourism and on districts like mine that rely on these industries.”
Restoring The Deduction
The bill is known as the FAIR BET Act, which stands for Fair Accounting for Income Realized from Betting Earnings Taxation Act. It permanently restores the 100% loss deduction from gambling winnings.
Under the current bill approved by the administration, a player winning $100,000 but also accruing losses of $100,000 would still pay taxes on $10,000.
Those in the gaming industry have expressed concerns about the provision. The concerns include gamblers moving to underground games and offshore sites, hurting the U.S. casino industry would be harmed.
Furthermore, it would reduce the size of poker tournaments since players would face tax implications even if they lose.
“There will be less people that can gamble, less money to be won, more people going overseas, more people going (through) illegal routes,” poker pro Doug Polk said in a video addressing the issue. “There are all these negative impacts that could very well cost you more than this 10% you’re trying to gain.”
Phil Galfond labeled the provision as “quite scary.” Other poker players also sounded the alarm about the implications last week.
On the other hand, the American Gaming Association praised the overall bill. An AGA spokesman told the Las Vegas Sun that it would help the industry’s “ability to sustain quality jobs and deliver economic benefits.”
However, the AGA also promised to work “closely with Congress in the coming months to address the changes to wagering deduction losses and further modernize the tax code.”
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