One Big Beautiful Bill Act sparks concern pro bettors could flock to black market
New law would mean sports gamblers could deduct only 90% of their losses from taxes, rather than 100% previously
The US Senate has proposed a federal tax amendment to President Donald Trump’s One Big Beautiful Bill Act, which would have significant implications for bettors in the country.
One of Trump’s marquee initiatives, the legislation is designed to “reduce taxes, reduce or increase spending for various federal programs, increase the statutory debt limit, and otherwise address agencies and programs throughout the federal government”.
The bill passed through the US Senate earlier this week with a narrow 51-50 vote.
Per the Senate’s proposed amendment to the Internal Revenue Code, bettors would only be permitted to deduct gambling losses equal to 90% of their winnings from their taxes, down from 100% previously.
Any gambling-related expenses would also be classified as gambling losses.
If passed, this would have significant ramifications for professional gamblers across the country, as they might feasibly owe money in taxes in years where they make losses on bets.
The Joint Committee on Taxation estimated that the change could raise more than $1bn in federal revenue over an eight-year period.
The American Gaming Association (AGA) threw its support behind Trump’s controversial legislation.
An AGA statement said: “We commend congressional leaders on the passage of the One Big Beautiful Bill Act.
“Our industry’s ability to sustain quality jobs and deliver economic benefits is significantly enhanced by the tax policies of OBBBA that support consumers, encourage business innovation and investment and strengthen US competitiveness.
“We look forward to President Trump’s expected signing and will work closely with Congress in the coming months to address the changes to wagering deduction losses and further modernize the tax code.”
The trade body eventually disabled comments on the statement posted on X amid backlash from other users.
The controversial bill has sparked fury amongst US bettors, with industry insiders fearful that the legislation will drive players towards black market sources.
Posting on X, professional poker player Phil Galfond argued the measure would be detrimental to both professional and casual gamblers across the US.
Galfond partially developed the BetRivers Poker platform operated by Rush Street Interactive.
He wrote: “This new amendment to the One Big Beautiful Bill Act would end professional gambling in the US and hurt casual gamblers, too. You could pay more in tax than you won.”
This bill amendment would represent the latest major tax change for US bettors.
Last month, Illinois approved a new state budget to charge operators $0.25 per bet on the first 20 million wagers placed in the state each year.
The fee would then increase to $0.50 on all bets placed thereafter.
In response, both Flutter and DraftKings introduced a $0.50 customer surcharge on every bet to offset the new transaction fee.