Bid to Restore Full Betting Deductions Nears Year-End Deadline
Summary
Politicians are scrambling in Washington as a tax change tucked into a large bill limits gambling-loss deductions to 90% from 2025, potentially preventing itemisers from offsetting wins with losses. Bipartisan efforts in the House, led by Dina Titus (Nevada) and Andy Barr (Kentucky), aim to restore full deductions, and a Senate companion bill exists — but legislative delays, a recent government closure and looming year-end deadlines mean progress is stalled. Industry groups warn the cap could deter high-stakes bettors, shrink operator revenues and push players offshore or toward alternative products with different tax treatments.
Key Points
- The One Big Beautiful Bill included a 90% cap on gambling-loss deductions that takes effect in 2025 for itemisers.
- House bills from Dina Titus and Andy Barr would reinstate full write-offs; a similar Senate bill is pending but inactive.
- Legislative disruption and year-end cut-offs make a timely fix unlikely unless attached to a major must-pass bill.
- Industry groups say the cap could reduce activity from high rollers and cost casinos and sportsbooks billions in 2025.
- Some operators fear affected players will move to offshore sites or to novel products (eg prediction markets) with different tax rules.
Context and Relevance
The rule change affects taxable income calculations for frequent bettors and has broad implications for operators, tax advisers and regulators. With major firms expanding into new betting products and prediction markets, differing tax treatments could shift customer behaviour and industry revenues next year. For stakeholders in US gambling markets, this is a policy change with immediate commercial risk.
Why should I read this?
Because this one tweak could bite wallets and profits next year. If you work in gambling, finance or compliance — or you handle high-value bettors — this is a quick heads-up that policy could change player behaviour and operator revenue. We skimmed the politics and pulled the bits that actually matter, so you can decide fast whether to dig deeper.
Source
Published: 2025-11-19T07:49:32+00:00 | Author: Silvia Pavlof
