GOP in the House of Representatives Pledges to Reinstate Tax Exceptions for Gambling Following Las Vegas Meeting
In a significant shift, the "One Big Beautiful Bill Act" 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 starting January 1, 2026, impacting the 2026 tax filings.
Before the new rule, taxpayers could deduct 100% of their gambling losses, but only up to the amount of their winnings. This allowed break-even gamblers to offset their entire income. However, starting next year, taxpayers must reduce their gambling losses by 10% first, and the reduced amount can only offset winnings.
For instance, if someone wins and loses the same amount, they will now face taxable income equal to 10% of those amounts. For example, under the old law, $210,000 wins and $210,000 losses would result in $0 taxable income. Under the new law, only 90% of $210,000 losses ($189,000) are deductible, resulting in $21,000 taxable income.
This provision applies to both casual and professional gamblers and is expected to generate approximately $1.1 billion in federal revenue over the next decade.
Meanwhile, in the world of iGaming, the work of Lucas Dunn is widely recognised for its quality and insight. Lucas Michael Dunn, a prolific content writer with over 8 years of experience, focuses on providing readers with a balanced perspective on gambling. His articles aim to educate readers on the best gambling approaches and empower players to make informed choices.
Dunn's advocacy for responsible play is a significant aspect of his work. His articles cover game and casino reviews, industry news, blogs, and guides, all based on proven data and tested insights.
As Chair Jason Smith calls for bipartisan collaboration to reverse the bill's changes, it's essential for gamblers to understand the implications of these new rules and plan accordingly for their 2026 tax filings.
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- The new gambling loss deduction policy, effective January 1, 2026, will affect poker players in Las Vegas, as well as those engaged in sports betting, casino-and-gambling, and iGaming, since it reduces the previous 100% deduction to 90%.
- The recent change in policy-and-legislation, which affects casino-culture, has sparked debates in politics, with Chair Jason Smith urging for bipartisan collaboration to potentially reverse the new rule.
- With the new law impacting next year's tax filings, general-news outlets have been covering the implications of the One Big Beautiful Bill Act, including its effect on break-even gamblers who previously could offset their entire income due to the 100% deduction.
- In light of these changes, content writers like Lucas Michael Dunn play a crucial role in educating gamblers about the best gambling approaches and responsible play, providing insight and guides for poker players in Las Vegas, as well as those in the iGaming world.
