The bill would automatically force some poker player to take losses when filing their taxes
A newly added provision to the Senate’s version of the One Big Beautiful Bill Act could significantly impact poker players and other gamblers across the US. The amendment, passed on July 1 as part of the broader extension of the Tax Cuts and Jobs Act, limits the amount of gambling losses that can be deducted for tax purposes. Under the proposed change, only 90% of total gambling losses would be deductible, leaving 10% taxable even if a player ends the year without any actual profit.
Currently, federal tax law allows gamblers to deduct losses equal to their winnings, enabling professional and high-volume players to pay tax based on their net income. This structure has long been considered fair, especially in games like poker, where swings in earnings are normal and players may win large amounts in some sessions and lose in others.
If the new rule becomes law, poker players would face a scenario where they owe taxes on income they never truly earned. For example, if a player wins $100,000 but loses $100,000 over the course of a year, they would still be taxed on $10,000, despite not turning a profit. This change could be particularly burdensome for professionals who rely on the ability to offset winnings with legitimate losses.
The poker community is already responding with concern. Lawmakers from gaming-friendly states are also paying attention. Congresswoman Dina Titus of Nevada has announced she will introduce an amendment aimed at removing this provision from the Senate version of the bill. Titus, known for her support of the gaming industry, argues that the proposed cap is unfair and could hurt both professional gamblers and the broader gaming economy.
Debate over the bill’s final form is expected to intensify as the legislation moves through the reconciliation process. Poker players and tax professionals alike are watching closely.
