New York Times Dealbook, Break Even at the Casino? You May Still Owe Taxes.:
It’s President Trump’s casino — and the house always wins.
That is the crux of gamblers’ frustration after they read Trump’s landmark policy legislation, which includes an under-the-radar provision that amends how gambling income is taxed.
Previously, gamblers were taxed like any other profession: If a poker player or sports bettor broke even, he or she would report zero taxable income. But starting next year, only 90 percent of losses will be deductible.
When gamblers break even, or incur a net loss, they will still owe taxes — effectively a 10 percent penalty on gambling winnings. The change is expected to generate an additional $1.1 billion in tax revenue through 2034.
“It makes it impossible to gamble for a living,” said Phil Galfond, a professional poker player.
Almost immediately after the law’s contents became public, professional gamblers, gaming coalitions, lawmakers and members of the casino industry denounced the betting-related change, vowing to roll back the rule before it goes into effect.
The backlash has set up a battle over earnings from the hundreds of billions of dollars that Americans legally wager each year through casinos, racetracks and sports betting apps. …
Some industry executives also believe the changes will push professional gamblers away from aboveground commercial establishments and into unregulated and illegal betting markets where they can avoid the financial penalty associated with reporting their income.
New York Times, How Small Provision Added to Donald Trump’s ‘Big Beautiful Bill’ Affects Taxes for Sports Bettors
- CNN, Why the Big Beautiful Bill’s Gambling Provision Matters So Much
- The Economist, The Big Beautiful Bill Will Kill One Profession: Professional Gamblers Get Beaten by the Odds
- New York Magazine, Did the One Big Beautiful Act Accidentally Gut the Gambling Industry?
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