Gamblers Push Back Against New Tax Provision in Trump's Budget Law

New Tax Law Impact on Gamblers

• 💰 A provision in President Trump's tax and spending law is drawing backlash from both professional and recreational gamblers.
• 💡 The change alters how gambling losses can be deducted, now limiting deductions to 90% of winning days, meaning gamblers may pay taxes on net losses.

Explanation of the Tax Change

• 📊 Previously, gamblers could deduct their total losing days from their winning days to calculate net taxable income.
• ⚠️ The new law restricts this, forcing gamblers to pay taxes on a portion of their losses, effectively taxing money they did not earn.

Potential Consequences for Gamblers

• 📉 Professional poker player Phil Galfond explains this could deter some players from continuing their careers, especially those in low-edge games like sports betting.
• 😥 The provision disproportionately punishes honest gamblers who meticulously track their sessions.
• ⚖️ It may also encourage more gambling to shift to offshore, less regulated platforms, further harming legal US online gambling businesses.

Industry and Government Perspective

• 📈 The US gambling industry generated $100 billion in 2023, with a significant portion already occurring offshore.
• 🤷 Senators have expressed unfamiliarity with the provision, suggesting it was added without consulting gambling experts.
• 🎯 Galfond believes the provision was likely a revenue grab without considering the crippling impact on individuals who rely on gambling for their livelihood.