Gamblers and Bettors Might ‘Hit it Big’ At Casinos and Sportsbooks, but the Republican Tax Bill Threatens to Put Them Out of Business

The new Republican tax and budget bill (the “One Big, Beautiful Bill”) might have some Americans winning big, but there’s one group who won’t be seeing 7-7-7s or red cherries in a row — gamblers and bettors. Hidden in the nearly 800-page bill, which makes permanent the 2017 Republican tax cuts, is an unfortunate tax hike on those who like to test the odds.

• Pre-OBBB, gamblers could deduct all losses against gambling income. But starting in 2026, they’ll only be able to deduct 90% of their losses from their winnings.
• As a result, some high-rollers or professional gamblers and bettors could end up owing more in taxes than they actually earn.

What’s the big deal? The expanded rules apply to sports bettors as well, meaning that the changes have the unintended consequence of harming Vegas casinos like Caesars and sportsbooks like FanDuel. That’s because professional gamblers and bettors might simply have to stop altogether to avoid steep tax bills. A bipartisan push to undo the provision has already been proposed.