A recently passed tax and spending bill, referred to as the “Big, Beautiful Bill,” has prompted significant concern among gamblers in Nevada, particularly those involved in poker and other betting activities.
With narrow support, the House approved the bill, which includes Section 70114 that modifies tax deductions for gambling losses.
Under the new provisions, tax deductions relating to losses from wagering transactions will be reduced to 90%.
This means that while a gambler could win $100,000 and lose $100,000 in a given year, effectively breaking even, they would only be able to deduct $90,000 of their losses on their taxes.
Consequently, they would face taxes on the remaining $10,000 that they have not actually earned, a change that significantly impacts serious gamblers.
The revisions will mainly affect high-stakes gamblers, professional players, and those participating in substantial sports betting or fantasy sports.
Casual gamblers, who do not itemize their taxes, will remain unaffected by these adjustments.
Concerns about this tax amendment have reverberated throughout the gaming community, especially as the World Series of Poker unfolds at the Horseshoe and Paris hotel-casinos on the Las Vegas Strip.
Jonas Lopas, a participant who traveled from Orange County, California, expressed worries about the long-term implications of such a tax liability on tournament participation.
He reflected, “It can really, really impact that bottom line.
The buzz around the World Series is like, what is this going to look like in 2026?
How many people are going to still keep coming and playing in these tournaments if they know they have a big tax liability, win or lose?”
Notably, pro poker player Phil Galfond voiced his apprehensions on X, suggesting that the amendment could potentially end professional gambling in the country.
Although he later moderated his initial reaction, he maintained that many professional gamblers might no longer be able to sustain their careers under the new tax structure.
Galfond’s concerns resonate with a wider commentary from gambling experts and analysts, such as those from InGame.com.
They forecast that the Big, Beautiful Bill could devastate the U.S. gambling market.
Writer Jeff Edelstein highlighted that even minor winnings would result in substantial tax liabilities.
For example, a person who wins $101,000 but loses $100,000 would find themselves with a mere $1,000 gain on paper, yet face a tax bill of $2,640 due to the reduced deduction limits.
Edelstein aptly summarized the burden by stating, “That’s not a tax on income.
That’s a tax on volume.”
This shift in tax policy is expected not only to lower individual gambling volumes but also to significantly impact the overall betting landscape.
Specifically, experts predict that sportsbooks may widen their spreads and increase fees, fantasy sports prize pools could shrink, and states that depend on gambling tax revenues may see a significant decline in collections.
In light of these developments, U.S. Rep. Dina Titus has expressed her concerns and suggested that she would introduce a bill next week to repeal the gambling provision of the Big Beautiful Bill.
However, the success of her repeal efforts remains uncertain, given the Republican majority in the House.
Titus highlighted what she believes to be inflated revenue estimates from the Joint Tax Committee, predicting $1.1 billion over eight years, suggesting that such figures were likely overstated as Republicans sought ways to mitigate the effects of tax cuts.
Moreover, Titus warned that the provision could lead individuals to seek out offshore gambling options or potentially misreport their winnings to circumvent additional taxation.
Poker players are clearly on edge, feeling the financial squeeze from the prospect of greater tax obligations.
As Lopas expressed, the situation is already challenging for anyone attempting to make a profit through gambling.
He remarked, “The story of playing poker or any game is the house always wins; well, now it’s not only the house always wins, but Uncle Sam wins a little extra, too.
So it’s a scary time for poker players.”
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