Chavdar Vasilev is a journalist covering the casino and sports betting market sectors for CasinoBeats. He joined CasinoBeats in May 2025 and reports on industry-shaping stories across the US and beyond, including legislative debates, market...
Read Full BioPresident Donald Trump this week did not rule out the idea of eliminating federal taxes on gambling winnings, but also did not signal support either. Asked by reporters aboard Air Force One whether he would consider ending the tax on gambling earnings, Trump said:
“I haven’t been asked that question in a long time. No tax on gambling? We have no tax on tips, we have no tax on Social Security, we have no tax on overtime. No tax on gambling winnings? I don’t know about that,” he said with a laugh. “I’m going to have to think about that.”
Though many headlines framed his answer as “Trump considers eliminating tax on gambling winnings,” the president’s words fall short of signaling an active policy push — he offered no plan, bill, or timeline, just an acknowledgement of the topic.
What’s Behind the Noise: The Tax Change That Sparked the Debate
The backdrop of Trump’s comment is tied to upcoming changes to gambling loss deductions. For decades, gamblers could deduct 100% of their losses up to the amount of their winnings.
In July 2025, however, the One Big Beautiful Bill Act (OBBBA) included a provision that will limit those loss deductions to 90% beginning with the 2026 tax year. That means a bettor who wins and loses the same amount could still face federal tax on up to 10% of their reported income.
The change has drawn significant backlash. That includes gamblers, tax professionals, and lawmakers on both sides of the aisle, many of whom say they were unaware of the provision.
Three Congressional Bills Aim to Fix It
In response, lawmakers have introduced three separate bills that would undo the OBBBA’s 90% cap and restore the traditional 100% loss-offset deduction. None has advanced to a vote.
Rep. Dina Titus (D-NV) has been the most vocal supporter of restoring the full deduction. She introduced the FAIR BET Act (H.R. 4304) shortly after OBBBA passed.
While she has gathered over 20 bipartisan co-sponsors, her bill has stalled. She also attempted to include it in the 2026 National Defense Authorization Act, but the House Rules Committee blocked it.
Sen. Catherine Cortez Masto, also a Democrat from Nevada, filed a Senate companion bill. In July, she attempted to pass her legislation using unanimous consent, but that attempt was blocked. The measure remains in the Senate Finance Committee.
The Republican-led WAGER Act (H.R. 4630), sponsored by Rep. Andy Barr (R-KY), also restores full deductibility. Like Titus’s FAIR BET Act, the WAGER Act remains in the House Ways and Means Committee.
Committee Chair Jason Smith has previously pledged to work with Republicans and Democrats to reverse the change in the gambling tax.
