Congress faced calls from a group backed by former Vice President Mike Pence to abandon tax breaks for gambling expenses
The Advancing American Freedom (AAF) group, headed by former Vice President Mike Pence, has called on federal lawmakers to eliminate tax deductions for gambling losses, arguing that such deductions promote problematic behaviour with negative societal effects and unfairly shift the economic costs of gambling to taxpayers.
The AAF's stance stems from the historical encouragement of gambling by the federal tax code, which previously allowed full expensing of gambling losses. The group contends that this practice should be discontinued entirely, as it subsidizes unproductive and harmful behaviour through the tax system.
The AAF supports Americans' freedom to gamble on sports but opposes regulations and taxation that effectively shift the financial burden of gambling losses to all taxpayers. They emphasise that nearly all gamblers lose money, which can lead to further financial, health, and family problems, creating social harms that taxpayers should not have to subsidise.
The group also argues that legalised sports gambling makes life more difficult for many Americans while funding government growth. They oppose efforts like the FAIR BET Act, which would restore gambling loss deductions up to 100%, viewing such a move as undermining a pro-growth tax code.
However, the AAF does not stop at advocating for no deduction. They prefer that gamblers be taxed in full, even beyond the 90% deduction cap, as set by the One Big Beautiful Bill Act. The group has also urged Washington to decline reinstating full expensing for gambling losses as part of a pro-growth tax code.
In a recent policy memo sent to offices on Capitol Hill, the AAF urged the elimination of three bipartisan bills that would restore the full 100% deduction for gambling losses. One of these bills is led by Nevada Congresswoman Dina Titus.
Congresswoman Titus is fighting against the One Big Beautiful Bill Act, warning that the new tax rule would be unnecessarily punitive and could push people to use unregulated platforms.
In conclusion, the Advancing American Freedom group's opposition to the tax deduction for gambling losses is based on the argument that such deductions promote problematic behaviour with negative societal effects and unfairly shift the economic costs of gambling to taxpayers. They advocate for either no deduction or a reduced deduction to discourage gambling.
The AAF's stance against the tax deduction for gambling losses in business and casino-and-gambling activities stems from their belief that such deductions encourage harmful behavior and unfairly shift economic costs to taxpayers. Furthermore, the group contends that politics and general news about the FAIR BET Act, which aims to restore gambling loss deductions, should take into account the negative societal effects of promoting gambling through tax incentives.
