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The "One Big Beautiful Bill" Could Sink Professional Gamblers Nationwide

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Publish Date: Jul 02, 2025

Fact checked by: Sara Jane Gamelli

If the 940-page Senate version of the "One Big Beautiful Bill Act" is passed after going back to the House of Representatives, sports bettors could be forced to pay more in taxes than what their net winnings show.

This massive bill, backed by President Donald Trump, includes several provisions; in legal news, among them a provision to limit deductions on betting losses to 90% of annual winnings.

How the 90% Deduction Works

The current law allows gamblers to deduct wagering losses, provided they don't exceed winnings for a given tax year.

This 90% cap also includes “any deduction otherwise allowable under this chapter incurred in carrying on any wagering transaction.”

This passage is related to things such as data or subscription services. Currently, those are considered separate from losses.

In the version sent to the Senate before it was amended, it included language that said combined deductions, which include non-loss expenses, couldn't exceed winnings.

Now, the Senate put it at 90%.

If this is to pass, bettors who wager large amounts and get smaller rates of return could be in for a surprise, such as their tax bill being more than their net winnings for all gamblers, both sportsbetting sharps and sweeps casino players.

An Example and Ongoing Backlash as Bill Heads Back to House

Here's an example of what this could look like:

Say a gambler has $201,000 in taxable winnings and $200,000 of losses plus expenses. The net winning would be $1,000. However, with only 90% of the amount ($180,000) able to be deducted, this would leave the player with a tax bill based on $21,000 in winnings. Then, with a 24% tax rate, which is the federal withholding rate for gambling taxes, this would result in a tax bill of over $5,000 for the player.

Of course, the exact tax rate does not include any other income, but even at the lowest bracket, there would still be a loss.

Captain Jack Andrews, a professional gambler and the co-founder of Unabated, took to X to discuss this, saying:

“The big beautiful bill proposes that gambling losses be capped at 90% of winnings — even for professionals.

“If you file the way the IRS intends, you declare gross winnings and deduct losses. This means even losing gamblers would owe money on their gambling.

“Combine this with the deep cuts in state funding and states will be looking to find revenue from increased gaming operator taxes (which squeeze the consumer).

“I say this sincerely: This will implode the entire gaming industry.”

This part of the bill also comes as states around the country are looking to increase sports betting taxes, including Illinois, which will include a wager fee of $0.25 on the first 20 million bets and $0.50 for each thereafter.

Other states, like New Jersey, are increasing from 13% to 19.75%, and Louisiana from 15% to 21.5%.

The bill passed with a 51-50 vote. The Senate voted 50-50, but the tie-breaking vote came from Vice President J.D. Vance.

All 47 Democrats voted no, as did three Republicans: Rand Paul, Thom Tillis, and Susan Collins.

Now, the bill heads back to the House for approval, as a conference committee will likely be formed to work out the differences.

We'll see what happens and how this impacts the gambling industry as a whole.

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