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US President Donald Trump on Tuesday signaled he could consider eliminating a new gambling tax that goes into effect on January 1, 2026.
The Big Beautiful Bill was a sweeping U.S. federal statute, passed in 2025 by the 119th Congress as H.R. 1 and signed into law by Trump. Spanning more than 900 pages, the bill contained a slew of provisions changing federal programs and the tax code, many of which lawmakers admit they are only now beginning to fully digest.
The gambling world quickly learned they, too, would be impacted.
Under the new law, starting for tax years beginning January 1, 2026, gamblers can no longer deduct 100% of their gambling losses. Instead, losses are capped at 90% of actual losses when offsetting winnings.
Even if a gambler were to break even, the new law now requires these individuals to report taxable income.
The US president was specifically asked by reporters aboard Air Force One on Tuesday whether he would entertain eliminating the federal tax on gambling winnings.
He replied: "We have no tax on tips, we have no tax on Social Security, and we have no tax on overtime. No tax on gambling winnings, I don't know. I'm gonna have to think about that."
While Trump may support abolishing the gambling provision, Republicans haven't been swayed....at least not yet.
Democratic Sen. Catherine Cortez Masto of Nevada sought unanimous passage of a bill that would roll back the change on gambling tax deductions
“My understanding is many Republicans, many Democrats did not even know it was part of that process,” Cortez Masto said of the gambling provision.
But, in the end, Masto's bill failed to pass as Senate Republicans blocked efforts to roll back the massive hike on professional gamblers.
- Chris Costigan, Gambling911.com Publisher
