Senate Republicans block attempt to undo gambling tax change
Republicans in the Senate have blocked a Democratic effort to undo a gambling tax change in the One Big Beautiful Bill Act that will reduce the amount of gambling losses players can deduct from wins from 100% to 90%.
On Thursday, Senator Catherine Cortez Masto pushed for unanimous consent for her bill reversing a rule in the new Republican tax and spending law that limits gambling loss deductions. However, Republican Senator Todd Young objected, effectively blocking the amendment.
The new rule, included in the 900-page bill signed by President Donald Trump last week, changes the way that gambling losses are treated for tax purposes.
From 2026, gamblers will only be able to deduct up to 90% of their losses for tax purposes, whereas previously, they were able to deduct all of their losses, capped at their total winnings.
The gambling industry, particularly professional gamblers, has warned that the change could make their work unsustainable.
Senator Masto said on the new gambling tax, “My understanding is many Republicans, many Democrats did not even know it was part of that process.”
The tax provision is estimated to generate US$1.1 billion in tax revenue over eight years. Several gamblers shared concerns about the new tax system before the passage of the One Big Beautiful Bill Act.
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