Michailas Bedulskis retweetledi
Yikes.
Senate Amendment to the Big Beautiful Bill =
You get taxed on more than you earned from gambling, even if you netted $0 (or less!).
Here's how it works and what you can do...
The change
If it passes in this form, starting in 2026, gambling losses (and expenses) will only be 90% deductible (and still only up to your total winnings).
What this means in plain English
If you win $100k and lose $100k – You’ll owe tax on $10k of “phantom” income.
If you win $100k and lose $50k – You actually profited $50k, but you’ll owe tax on $55k.
If you win $100k and lose $150k – No tax owed (your deduction is capped at $100k, which is more than 90% of $150k ($135k)).
(Editing in from my post below because it's important:
A pro who earns $200k/year might have $3m in winnings and $2.8m in losses.
This means earning $200k and being taxed as if they earned $480k.)
This applies to both recreational and professional gamblers.
For pros, your travel, coaching, software, etc. are lumped into the “loss” bucket and still subject to the 90% cap.
What to do
Pulling from @russcfox's post:
"If you don't like this (and I don't), and if you have a GOP Congressman, let them know. (You can find your House representative at house.gov/representative…) Be respectful in your message, and, yes, they are looked at."
Thank you for breaking the news and keeping poker players posted, Russ!
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