Lawmakers Say They Missed Tax Change That Hurts Bettors

A tax change buried in a massive federal bill is causing major concern among professional gamblers—and many lawmakers say they never saw it coming. Now, efforts to reverse it are underway, but political standoffs in the Senate have slowed any progress.

Good to know

• New rule limits bettors to deducting only 90% of losses against 100% of winnings.
• Cortez Masto and Dina Titus are both pushing repeal bills with bipartisan support.
• Critics fear the change will push gamblers to offshore sites to avoid taxes.

Professional poker players and sports bettors are upset after discovering that a tax provision slipped into a recently passed bill will drastically cut how much of their losses they can deduct. The change, added quietly on June 16 and signed into law by former President Donald Trump on July 4, limits deductions to 90% of losses against total winnings. Previously, bettors could deduct 100% of their losses.

Nevada Senator Catherine Cortez Masto said many Democrats were unaware of the tax tweak. She introduced a bill, the FULL HOUSE Act (Senate Bill 2330), aiming to bring back the full deduction allowance. However, Republican Senator Todd Young blocked her request for a Senate vote, saying Democrats must first agree to additional conditions.

“I strongly support the underlying bill, but will have to object unless you can agree to my request,” Young said, as reported by the Associated Press.

Even some senior Democrats admitted that lawmakers on both sides may not have realized the gambling tax provision was included. Oregon Senator Ron Wyden, the top Democrat on the Senate Finance Committee, criticized how the policy was added.

“When you rush a process like this, this way, and cram in all of these policies that you haven’t really thought about, you risk consequences for people back home,” Wyden said.

Professional gamblers voiced their frustration online after news of the change began circulating. Many argued that taxing them on money they never actually won was unfair and could lead more people to wager on unregulated offshore platforms where tax enforcement is nonexistent.

The fight is not limited to the Senate. In the House, Representative Dina Titus introduced the FAIR BET Act (HR 4304), which also seeks to reinstate the previous tax structure. Like Cortez Masto, Titus represents Nevada and has been vocal about how the new rule impacts full-time bettors.

“No one should have to pay taxes on money they didn’t win,” Titus said in a post on X.

The push to repeal the change is gaining bipartisan support, but timing remains uncertain. The FULL HOUSE Act is now with the Senate Finance Committee, while the FAIR BET Act awaits a hearing in the House Ways and Means Committee.

The post Lawmakers Say They Missed Tax Change That Hurts Bettors appeared first on iGaming.org.