US poker tax could be repealed this year
For the last nine months, poker players in the United States have been dealing with the new gambling tax introduced by Donald Trump. Brought in as part of the "Big Beautiful Bill," the new gambling tax only allows 90% deductions on losses. Practically, this means that someone could have a losing year but still owe tax.
Finally, U.S. gamblers have received good news this week, as the House Ways and Means Committee has voted in favour of advancing a bill which contains a proposed fix to this new tax law. It would essentially ensure that gamblers could deduct 100% of their losses against winnings.
The committee voted overwhelmingly, 38-5, on the bill, which was introduced by Representative Dina Titus, who has been the strongest opponent of the new tax laws.
Light at the end of the tunnel
“This would stop the reduction to 90 percent from taking effect and ensure gamblers across the nation do not pay this tax on phantom money they never won,” she said. “Altering the tax code was a ruse in the One, Big, Beautiful Bill at the expense of recreational and professional gamblers. As I have said many times, it must be fixed.”
The bill now needs to go to the House floor to be voted on by the whole chamber. If the majority passes it, it moves to the Senate. If it gets passed there, it will then finally go to the President, who can either sign it into law, veto it, or it will automatically become law if no action is taken after 10 days.
All of which is a potentially lengthy process, and right now the prediction markets only give the bill a 30% chance of coming into law before next year. The bill would also be enacted retroactively, meaning that potentially 2026 gambling tax losses could be eventually clawed back.
Still, there is light at the end of the tunnel now for poker players in the United States, many of whom have changed their play this year. In a year where the numbers were down at the World Series of Poker, it would be interesting to see the impact this has on WSOP Paradise and the World Poker Tour Championship in December if the bill came into law by the end of the year.
