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Lots of folks in the gambling sphere have come out blasting the so-called "Big Beautiful Bill" that will allow gamblers to only declare 90 percent of their losses as compared to the 100 percent they can currently declare.
Barstool Poker offered this assessment of the bill:
The Big Beautiful Bill is trying to kill your both your livelihood and your fun.
Barsool Poker was responding to poker pro Phil Galfond, who has been outspoken about the spending bill in recent days, explaining the possible ramificiation for gamblers.
Yikes.
Senate Amendment to the Big Beautiful Bill =
You get taxed on more than you earned from gambling, even if you netted $0 (or less!).Here's how it works and what you can do...
The change
If it passes in this form, starting in 2026, gambling losses (and expenses) will only be 90% deductible (and still only up to your total winnings).
What this means in plain English
If you win $100k and lose $100k – You’ll owe tax on $10k of “phantom” income.
If you win $100k and lose $50k – You actually profited $50k, but you’ll owe tax on $55k.
If you win $100k and lose $150k – No tax owed (your deduction is capped at $100k, which is more than 90% of $150k ($135k)).
(Editing in from my post below because it's important:
A pro who earns $200k/year might have $3m in winnings and $2.8m in losses.
This means earning $200k and being taxed as if they earned $480k.)
This applies to both recreational and professional gamblers.
For pros, your travel, coaching, software, etc. are lumped into the “loss” bucket and still subject to the 90% cap.
What to do
Pulling from @russcfox
's post:"If you don't like this (and I don't), and if you have a GOP Congressman, let them know. (You can find your House representative at https://house.gov/representatives/find-your-representative) Be respectful in your message, and, yes, they are looked at."
Thank you for breaking the news and keeping poker players posted, Russ!
iGaming Advocate touched on the idea that this will help bolster both offshore sportsbooks, poker sites and local bookies who typically do not report customer winnings to the IRS or other tax authorities.
"Did Bovada lobbyists push for this?," he quipped.
Anjali asked whether a. workaround could be placing gambling winnings in an LLC.
"I’m not a tax professional, but currently, while you can incorporate as a poker pro, it doesn’t offer many advantages. The laws are similar, and you can deduct expenses as a pro gambler regardless."
CrazyNinjaMike went as far as to suggest this new tax is unconstitutional.
He writes:
"The 16th Amendment only lets Congress tax “income.” If there’s no net gain (wins = losses), there’s no income to tax. Courts have said that for a century (Eisner v. Macomber, Glenshaw Glass). SEC 70114 is unconstitutional."
And if you were thinking the USA's largest gambling association would be defiantly objecting to this new requirement, guess again.
Las Vegas Locally tweeted out:
"The American Gaming Association stabbed every American gambler in the back today. Then they hid every reply to this post and turned off comments."
The American Gaming Association stabbed every American gambler in the back today. Then they hid every reply to this post and turned off comments. https://t.co/veMifnrfER
— Las Vegas Locally (@LasVegasLocally) July 3, 2025
He alluded to the AGA praising its passage.
The passage of the One Big Beautiful Bill Act significantly enhances our industry’s ability to sustain quality jobs and deliver economic benefits — and we look forward to President Trump’s expected signature. pic.twitter.com/gEvfABL665
— American Gaming Association (@AmericanGaming) July 3, 2025
The AGA wrote:
"The passage of the One Big Beautiful Bill Act significantly enhances our industry’s ability to sustain quality jobs and deliver economic benefits — and we look forward to President Trump’s expected signature."
They did leave one comment up.
"Holy (shit) you should immediately fire whoever wrote this along with whoever decided to waited until after the bill was passed to comment on a bill that will be seriously detrimental to the casinos you represent."
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