Contentious Poker Tax Legislation Uniting Opposing U.S. Politicians
In the world of professional poker, a new tax provision has sparked controversy and raised concerns among players. The provision, part of the "One Big Beautiful Bill" signed into law by President Donald Trump on July 4, 2025, caps gambling tax deductions for losses at 90%, a shift from the previous 100% deduction rule. This change could result in taxable income on paper even when actual winnings and losses are equal.
The controversial provision has not gone unnoticed in the halls of Congress. Sen. Ted Cruz (R-Texas) has expressed interest in addressing the issue, referring to it as the "Poker Players Death Tax." Sen. Cruz has spoken out against the policy on his podcast, "Verdict with Ted Cruz," and has admitted that "nobody saw" the "little provision that was written" in the One Big Beautiful Bill.
Sen. Cruz is not alone in his efforts. Sen. Jacky Rosen (D-Nevada) and Rep. Dina Titus (D-Nevada) have joined forces with Sen. Catherine Cortez Masto (D-Nevada) to collaborate with Sen. Cruz in addressing the issue. Sen. Bill Haggerty (R-Tennessee) is also participating in the effort to fix the poker tax provision.
The gambling and betting community, including professional players, has raised significant concerns about the increased tax burden and potential unfairness of the provision. Phil Hellmuth, a Poker Hall of Famer, has encouraged Sen. Cruz to push for changes to the "Poker Players Death Tax." However, it's worth noting that Hellmuth has not been mentioned as assisting Sen. Cruz in fixing the provision, but he has previously helped Sen. Cruz introduce a policy benefiting America's youth.
The group of senators and representatives have introduced legislation to address the issue, but as of August 2025, no repeal or amendment has been enacted. There is concern that if the poker tax provision isn't fixed, it could drive professional poker players out of the U.S.
The Joint Committee on Taxation estimates that this change will raise approximately $1.1 billion in federal revenue over 10 years. Despite the potential revenue, the gambling community argues that the provision is unfair and could have significant implications for professional poker players.
In a twist of irony, Sen. Cruz himself is a poker enthusiast. He has competed on an episode of Poker After Dark on PokerGO and enjoys watching the World Series of Poker (WSOP). It remains to be seen whether his personal interest in the game will lead to significant changes in the tax code.
As the debate continues, the fate of the poker tax provision remains uncertain. Whether it will be repealed or amended before it takes effect in 2026 remains to be seen. Until then, the provision remains a contentious issue in the world of professional poker and U.S. politics.
[1] CNN [2] Politico [3] ESPN [4] The Hill
- The "One Big Beautiful Bill" has brought about a controversial new tax provision in professional poker that caps gambling tax deductions for losses at 90%, causing concern amongst players.
- Senators Ted Cruz, Jacky Rosen, Catherine Cortez Masto, and Bill Haggerty, along with Representative Dina Titus, are collaborating to address this issue, collectively referred to as the "Poker Players Death Tax."
- Phil Hellmuth, a well-known poker player and Hall of Famer, has encouraged Sen. Cruz to push for changes to the "Poker Players Death Tax."
- CNN, Politico, ESPN, and The Hill have been covering this ongoing debate between the gambling community, politicians, and the potential impact on professional poker players.
