Gamblers Raise Alarm Over $1.1 Billion Tax Hike in Trump’s Bill

LeviBusiness2025-07-041130

(Bloomberg) -- Gamblers are raising the alarm about a $1.1 billion tax hike buried in the Senate GOP’s tax bill that would slash their net winnings and potentially charge income tax when they break even or lose money.

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In the Senate’s roughly 900-page version of President Donald Trump’s multitrillion-dollar tax bill, gamblers would only be able to deduct 90% of their losses when calculating their net income. Under current law, a bettor can deduct the entirety of their losses, up until the amount of their gambling winnings.

“I’ve spoken to many clients and they’re very concerned,” Zachary Zimbile, an accountant with experience in gambling regulations, said in an interview. “If you add a 10% penalty, it’s going to eat into a lot of their profit.”

Professional gamblers recently took to social media to rail against the measure, which would take effect next year, and urged Republicans to change it. Congressional scorekeepers have calculated it will net the government $1.1 billion through 2034.

Representative Dina Titus, a Democrat who represents the Las Vegas area, said she is seeking a fix.

“It will have a big impact on gaming,” Titus said. “They thought it was just a handful of professional poker players, but a lot of amateurs have come out of the woodwork to oppose it too.”

Betting has become increasingly popular in the US in recent years with the rise of online firms like FanDuel Inc., DraftKings Inc. and Kalshi Inc.

The industry brought close to $72 billion in US commercial gaming revenue in 2024, marking a fourth-straight record revenue year, according to the American Gaming Association. It has also been boosted by the Trump administration, with Donald Trump Jr. serving as a strategic adviser for Kalshi.

A spokesperson for Kalshi declined to comment. FanDuel and DraftKings didn’t immediately respond to a request for comment. The American Gaming Association declined to comment.

Still, casinos and gaming firms are set to benefit from the extension of corporate tax cuts for interest, research and development, and expensing. The measure is now headed to the House after the Senate passed it Tuesday.