ChatGPT Does Not LIke the New Gambling Tax That's Part of the 'Big Beautiful Bill'

Submitted by C Costigan on

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C Costigan

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Over the past couple of days, sports bettors, daily fantasy sports players and poker players alike have come to realize that the "big beautiful bill' may not be for them. 

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Sure the American Gaming Association seems to love it.  That's about it. 

And ChatGPT hasn't let us down either. 

We asked ChatGPT what it thought of the new gambling law that no longer allows gamblers to deduct 100 percent of their losses.  It's now 90 percent. 

"The 'One Big Beautiful Bill' (aka the Big Beautiful Bill or BBB) changes how gambling losses are taxed — and it’s definitely stirring up controversy."

That's a bit of an understatement, to say the least. 

"For casual bettors, it means paying taxes on “income” you never really earned while, for the pros, it’s potentially a game‑changer—possibly threatening their business model.

"This creates 'phantom income': even if you break even overall, you might owe taxes on up to 10% of your reported winnings." ChatGPT determined. 

"Many argue it’s unfairly punitive, effectively taxing losses that never materialized — this is a new form of taxation on fictional income."

So who gets hurt the most? 

Recreational bettors who break even could find themselves paying federal income tax on winnings they haven’t actually kept.

Professional gamblers (including pro sports bettors and poker players) could see dramatic cost increases, potentially making their livelihoods unviable.

States with big gambling industries like Nevada worry this could drive bettors offshore or underground, hurting regulated businesses and reducing tax revenue.

Some of the more outspoken folks when it comes to this new legislation, pro poker player Phil Galfond. He warned it “would end professional gambling in the US and hurt casual gamblers."

Nevada Rep. Dina Titus plans to introduce corrective legislation, stating it “punishes people … trying to do the right thing by reporting gambling”

Titus has been asked to speak at this summer's Bet Bash conference by organizer Gadoon “Spanky” Kyrollos.

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