Professional poker players, sports bettors, and other casino-dependent gamblers are growing more concerned that a tax shift in the Republicans' "One Big Beautiful Bill" won't be fixed.
The amount of gambling losses that an individual filer can deduct against their profits was lowered from 100% to 90% by the tax and spending policy package that President Donald Trump signed into law on July 4. According to the proposal, a person who gambles $100K and wins $100K during the tax year would have to pay $10K in federal taxes.
To increase the tax deduction to 100%, US Representative Dina Titus (D-NV) has proposed the FAIR Bet Act, also known as the "Fair Accounting for Income Realized from Betting Earnings Taxation Act." The House Ways and Means Committee has declined to take up the bill despite it having 21 bipartisan sponsors.
Professional gamblers are expressing concerns as the wagering tax adjustment is set to take effect in less than a month.
Pro Gamblers Pay Unfair Taxes
In order to calculate their taxable income, firms are often permitted by the IRS to deduct their expenses from their revenue. The One Big Beautiful Bill, according to professional gamblers who itemize, unfairly penalizes them by taxing phantom money that they did not get at the end of the year.
Online poker player David Kaye, who has 21.8K Twitch followers, claims that until the tax code is restored, he will find new employment.
“If the 2026 Gambling Tax change is not repealed, I will not be playing online poker next year,” Kaye wrote on X. Kaye broke down how the One Big Beautiful Bill wagering tax would impact him in a hypothetical scenario.
Blaise Bourgeois, a poker player who finished ninth at the Aria Poker Classic $1,100 No-Limit Hold’em event in June, says the “Big Sh**ty Ass Bill is dangerous for volume-based poker players/gamblers who carve out thin edges.”
According to professional bettor and Unabated Sports co-founder Rufus Peabody, the tax reform also aims to punish losing gamblers.
“Someone can lose money gambling, and still owe taxes on it,” Peabody posted on X.
Senate Companion Bill
The congressional delegation from Nevada is spearheading the effort to reinstate the wagering deduction. US Senators Jacky Rosen (D-NV) and Catherine Cortez Masto, in addition to Titus' FAIR Bet Act. The FULL HOUSE Act, also known as "Facilitating Useful Loss Limitations to Help Our Unique Service Economy," was introduced by Ted Cruz (R-TX) and Bill Hagerty (R-TN).
"Taxing people on money they don’t have will stifle the tourism industry in states like Nevada, push poker tournaments offshore, and drive betting into underground, unregulated markets. There is bipartisan support to fix this mistake, and it is time for my colleagues in both parties and chambers of Congress to get it done,” Cortez Masto said.
“Our bipartisan bill fixes a harmful provision … that taxes casino players who lose money. It’s not just bad math, it’s bad policy,” added Rosen. “If we don’t fix this misguided provision, people would be discouraged from visiting casinos and Nevada’s tourism economy would take a hit.”
