Gamblers share concern over tax hike in US budget bill
Gamblers and industry stakeholders are expressing concerns over a provision in the recently passed US budget bill that will negatively effect tax provisions for gamblers.
The measure, part of President Donald Trump’s multitrillion-dollar tax package, would limit gamblers to deducting only 90% of their gambling losses when calculating net taxable income.
Under current law, gamblers can fully offset winnings with their losses up to the amount of their winnings. The proposed 10% limit on deductions has led to backlash from professional and amateur players, who say it would penalize them even when they break or lose overall.
“I’ve spoken to many clients, and they’re very concerned,” Zachary Zimbile, an accountant familiar with gambling taxation, told Bloomberg. “If you add a 10% penalty, it’s going to eat into a lot of their profit.”
Representative Dina Titus, a Democrat representing the Las Vegas area, said she is pushing for a fix, warning it could have “a big impact on gaming.”
According to The American Gaming Association, US commercial gaming generated nearly US$72 billion in 2024, a fourth-straight record year, driven by online operators such as FanDuel, DraftKings, and Kalshi.
Casinos and gaming firms could benefit from extended corporate tax breaks on interest, research and development, and equipment expensing as part of the bill.
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