Understanding the Tax Deduction Provision
Under Section 70114 of the so-called Big, Beautiful Bill, tax deductions resulting from “losses from wagering transactions” will be reduced to 90%, and are only allowed to the extent of gains from gambling wins. This means that gamblers will only be able to deduct 90% of their losses on their taxes, and the remaining 10% will be subject to taxation. For example, if a person wins $100,000 in a given year and loses $100,000 in the same year, breaking even, they would only be able to deduct 90% of their $100,000 loss, which is $90,000. This means they would have to pay taxes on the remaining $10,000, even though they never actually saw that money.
Who Will Be Affected
The change will not affect casual gamblers or anyone else who does not itemize their taxes and take deductions. However, it could affect people who spend a lot in casinos, fantasy sports, or sportsbooks. Poker players, both professional and amateur, are particularly concerned about the impact of this provision.
- Professional poker players
- Poker players who write off gambling losses on their taxes
- People who spend a lot in casinos, fantasy sports, or sportsbooks
Impact on Poker Players
The change will have a significant impact on poker players, both professional and amateur. As Jonas Lopas, a poker player from Orange County, California, said, “The buzz around the World Series is like, what is this going to look like in 2026? How many people are going to still keep coming and playing in these tournaments if they know they have a big tax liability, win or lose?”
The provision will also affect poker players who have written off gambling losses on their taxes in the past. As Phil Galfond, a professional poker player, said, “The amendment would…end professional gambling in the U.S.” Galfond later walked back his statement, but still expressed concerns about the impact of the provision on professional poker players.
Predictions of the Impact
Several experts predict that the provision will have a significant impact on the gaming industry. News of the tax prompted the website InGame.com to predict that the “Big Beautiful Bill” is set to destroy U.S. gambling. Jeff Edelstein, a writer for the website, said, “Even slight wins would cause big tax bills. If a person won $101,000 but lost $100,000, they’d be up $1,000, but the smaller deduction would cause them to have a tax bill of $2,640.”
Other experts predict that the provision will lead to a decrease in betting volume, wider spreads in sportsbooks, increased fees, and smaller prize pools in fantasy sports. U.S. Rep. Dina Titus, who opposed the provision, said that the Joint Tax Committee estimates of $1.1 billion in federal revenue over eight years were overstated, and that Republicans were looking for any additional money to blunt the impact of the bill’s tax cuts.
Repeal Efforts
U.S. Rep. Dina Titus has announced plans to bring a bill to repeal the provision next week. However, it’s not clear how her repeal bill will fare in a Republican-controlled House.
Expert Opinions
Several experts have weighed in on the impact of the provision. Phil Galfond, a professional poker player, said, “The amendment would…end professional gambling in the U.S.” He later walked back his statement, but still expressed concerns about the impact of the provision on professional poker players. Jeff Edelstein, a writer for the website InGame.com, said, “Even slight wins would cause big tax bills. If a person won $101,000 but lost $100,000, they’d be up $1,000, but the smaller deduction would cause them to have a tax bill of $2,640.”
U.S. Rep. Dina Titus said, “The Joint Tax Committee estimates of $1.1 billion in federal revenue over eight years were overstated, and that Republicans were looking for any additional money to blunt the impact of the bill’s tax cuts.”
Conclusion
The impact of the Big Beautiful Bill on gamblers in Nevada will be significant. The provision will affect poker players, both professional and amateur, and could lead to a decrease in betting volume, wider spreads in sportsbooks, increased fees, and smaller prize pools in fantasy sports. While some experts predict that the provision will have a devastating impact on the gaming industry, others believe that it will have a more nuanced effect. One thing is certain, however: the Big Beautiful Bill will have far-reaching consequences for gamblers in Nevada.
