Key Points
- The AGA supports Trump’s One Big Beautiful Bill Act, signed July 7, 2025, despite a 90% gambling loss deduction cap sparking outrage among bettors.
- The cap, effective 2026, taxes “phantom income,” threatening professional gamblers’ livelihoods and potentially pushing bettors to unregulated sites.
- Bettors should use licensed platforms, track records, and stay informed via GamblingNews to navigate the new tax landscape.
The American Gaming Association (AGA) has endorsed President Trump’s One Big Beautiful Bill Act, signed into law on July 7, 2025, despite widespread backlash from gamblers over a provision limiting gambling loss deductions to 90%.
The change, buried in the 900-page Senate bill, could tax bettors on “phantom income” even when they break even, sparking concerns about the future of professional gambling. You’re seeing a divide between industry support and player frustration, with potential shifts in the betting landscape.
Why the AGA Supports the Bill
The AGA praises the bill for its economic growth measures, like tax relief for high-income earners and simplified codes, but acknowledges the controversial deduction cap, promising to work with Congress to address it.
The provision, effective 2026, ends the current rule allowing 100% loss deductions up to winnings, meaning a gambler with $100,000 in wins and losses would owe taxes on $10,000 despite no profit. For you, this could mean higher tax burdens, especially if you’re a high-volume bettor, as the AGA’s support prioritizes operator benefits over individual gamblers.
See also:
- Australian Doctors Urge Ban on Influencers Glamorizing Pokies to Protect Vulnerable Players
- Thailand Scraps Casino Legalization Bill Amid Public and Political Backlash
- MIXI Clears Ontario Hurdle in PointsBet Takeover Battle, Betr Fight Persists
Gambler Backlash and Industry Impact
Professional gamblers, like poker player Phil Galfond, warn the 90% cap could “wipe out” their profession, as taxes on unearned income erode thin profit margins. A gambler winning $5.2 million and losing $5 million would face taxes on $700,000, not their $200,000 net gain.
Nevada Congresswoman Dina Titus criticized the AGA for not opposing the bill, arguing it could push bettors to unregulated black-market sites. For you, this risks reduced trust in regulated platforms, with X posts showing anger at the AGA’s disconnect from bettors’ concerns.
Challenges and Risks for Bettors
The tax change threatens professional and high-stakes recreational gamblers most, as their high transaction volumes amplify the impact. The AGA’s silence during the Senate vote, despite earlier urging to preserve full deductions, has fueled distrust, per American Bettors’ Voice CEO Richard Schuetz.
Unregulated offshore sites, offering better odds but no protections, could gain traction if bettors feel squeezed. For you, this means verifying platform licensing to avoid fraud while navigating a potentially shrinking regulated market.
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