Republicans in the House of Representatives commit to reinstating gambling tax write-offs following a meeting in Las Vegas.
In a significant shift, the One Big Beautiful Bill (OBBB) signed into law on July 4, 2025, includes a provision that reduces the deduction for gambling losses from 100% to 90%. This change will take effect for tax years beginning in 2026.
Under the previous law, gamblers could deduct 100% of their losses up to the amount of their winnings, allowing those who broke even to avoid taxable income on gambling activities. However, with the new rule, taxpayers will only be able to deduct 90% of their losses against winnings. This means that even gamblers who break even may have taxable income on paper, often referred to as "phantom income." For instance, if winnings and losses both equal $500,000, only $450,000 of those losses would be deductible, resulting in $50,000 of taxable income.
The change was included in the OBBB legislation and was added by the Senate Finance Committee during final negotiations. The provision is expected to increase federal revenue by approximately $1.1 billion over 10 years. The limit applies to both casual and professional gamblers, and efforts by some lawmakers to repeal or modify the rule are ongoing but have so far not stopped the provision from taking effect as scheduled on January 1, 2026.
Meanwhile, in the realm of iGaming content creation, Lucas Dunn advocates for a balanced approach between thrill and informed decisions. A psychology graduate and painter, Dunn transitioned into the iGaming world with over 8 years of experience. His work focuses on empowering players to make informed choices and is based on proven data and tested insights. However, it's important to note that Dunn's work is not related to the recent changes in gambling loss deductions from 100% to 90%.
Chair Jason Smith is calling for bipartisan collaboration to reverse the changes in the code. The calls for collaboration are ongoing, but the provision remains scheduled to take effect as planned on January 1, 2026.
[1] [Source 1] [2] [Source 2] [3] [Source 3] [4] [Source 4]
- The new policy-and-legislation, included in the One Big Beautiful Bill (OBBB) signed in 2025, will affect casino-culture in Las Vegas, as it reduces the deduction for gambling losses from 100% to 90%.
- The Casino-and-gambling sector in Las Vegas has been shaken by the OBBB provision, with the change expected to impact both casual and professional gamblers.
- In the world of iGaming, despite ongoing discussions about the changes in gambling loss deductions, Lucas Dunn's work focuses more on empowering players to make informed choices, rather than the recent policy-and-legislation changes.
- The recent changes in gambling loss deductions have sparked discussions in the realm of politics, with Chair Jason Smith calling for bipartisan collaboration to reverse the changes, but efforts so far have not stopped the provision from taking effect on January 1, 2026. [Source 1, 2, 3, 4]
