Senate Republicans on Thursday stopped a Democratic attempt to roll back a tax change that professional gamblers warn could cripple their industry.
Nevada Democrat Catherine Cortez Masto sought quick approval of a bill to fully restore gambling loss deductions, but Indiana Republican Todd Young opposed it, effectively putting the proposal on hold.
“I strongly support the underlying bill, but will have to object unless you can agree to my request,” Young said on the Senate floor, signaling he’d consider a trade for other provisions.
The New Tax Would “End Professional Gambling in the U.S.”
The disputed tax rule, tucked into the $3.3 trillion tax-and-spending overhaul signed by President Donald Trump last week as part of the controversial One Big Beautiful Bill Act, which received support from the American Gaming Association, limits how much gamblers can deduct starting in 2026.
Previously, players could deduct 100% of their losses up to their winnings. The new law reduces that to 90%, meaning even players who break even on the tables could still owe taxes.
Phil Galfond, a professional poker player, warned online that the change “would end professional gambling in the U.S. and hurt casual gamblers, too.” Under the new rule, someone who wins and loses $100,000 in a year would only be able to deduct $90,000, leaving them with taxable income despite no net gain.
Bill to Raise $1.1B in Eight Years
Critics slammed how the provision made it into the bill, arguing it was quietly added with little review. At over 900 pages, the legislation is packed with changes many lawmakers are still trying to understand.
“My understanding is many Republicans, many Democrats did not even know it was part of that process,” Cortez Masto said.
Senate Finance Committee Chair Mike Crapo included the provision when releasing the final text on June 16, just days before the vote.
“Now I see Republican senators walking all over the Capitol saying they didn’t even know anything about this policy,” said Sen. Ron Wyden, the Finance Committee’s top Democrat. “The fact is, when you rush a process like this … you risk consequences for people back home.”
The Joint Committee on Taxation estimates the change will raise about $1.1 billion over eight years. Republicans defend the overall bill as a necessary overhaul, made possible by the reconciliation process that avoided a Democratic filibuster.
Cortez Masto isn’t giving up. She introduced a separate, bipartisan bill Wednesday to fully restore the deduction, which will move through the committee. In the House, Nevada Democrat Dina Titus is pushing a similar fix.