Gamblers sounded the alarm over a new provision in President Donald Trump’s recently passed spending bill that imposes a $1.1 billion tax increase by limiting the deductibility of gambling losses.
The change, buried in the Senate GOP’s version of the sweeping “Big Beautiful Bill,” will cut their net winnings and potentially charge income tax when they break even or lose money, according to Bloomberg.
Under current law, gamblers are allowed to deduct 100% of their losses, up to the amount of their gambling winnings. But the final version of the legislation — set to be signed by Trump during a White House ceremony Friday — modifies that rule.
A provision tucked into President Trump’s Big Beautiful Bill will raise taxes on winnings earned from gambling. AP
Beginning in 2026, only 90% of losses will be deductible, meaning some gamblers could owe taxes even when they break even or incur a