President Donald Trump’s so-called “Big Beautiful Bill” that would extend tax cuts, cut social safety nets, and surge national debt, might bring a harsh reality for gamblers if certain tax changes are included.
According to various online reports, the Senate’s version of this sprawling legislation that has been sent to the House of Representatives for a potential final vote includes a tweak to how gambling winnings and losses are taxed, a change that could make it tougher for gamblers to come out ahead.
“I think it’s going to go very nicely in the House,” Trump commented. “Actually, I think it will be easier in the House than it was in the Senate.”, he went on.
10% Cut in Deductible Losses
The key point is this: under the Senate’s proposal, deductions for gambling losses would be capped at 90 percent of those losses.
In plain terms, if someone wins $100,000 but also loses $100,000, for tax purposes, it will be treated as if only $90,000 of those losses occurred. That means the gambler owes tax on $10,000 that they never actually profited from.
This 10 percent reduction in deductible losses may seem small, but it has big implications. The more a person gambles, the harder it will become to break even.
This shift also benefits gambling operators, or “the house,” indirectly. Professional gamblers tend to be the ones who consistently come out ahead, unlike casual players who mostly lose money.
Making it harder for pros to profit by raising their tax burden means fewer sharp players will stick around. In turn, casinos and sportsbooks are left dealing mainly with casual gamblers who are more likely to lose, which ultimately boosts the industry’s bottom line.
Whether this 90 percent cap survives into the final bill is still uncertain.
“It’s Time to Vote”
The “One Big Beautiful Bill Act” is slated for a vote by July 2, with about 70-75 percent odds of passing, according to betting markets like BetOnline.ag.
The Senate is pushing hard to meet President Trump’s goal of signing the bill by July 4, even as some Republicans hesitate.
“It’s time to vote,” said Senate Majority Leader John Thune as debate began, though he later admitted final approval might slip.
Meanwhile, Senate Democratic Leader Chuck Schumer didn’t refrain from criticizing the bill, saying Democrats would keep proposing amendments to challenge the Republicans on their tax cuts and Medicaid cuts.
For now, all eyes are on Congress as they race to pass the bill that could reshape gambling taxes and much more before the summer holiday.