Controversial Trump gambling tax changes went into effect Jan. 1: What you need to know
New tax laws enacted by President Trump reduce the deduction for gambling losses to 90%, requiring gamblers to pay taxes on some winnings even when breaking even.Summary
As of January 1, 2026, new tax laws stemming from President Trump’s “One Big Beautiful Bill” have altered the way gambling winnings are taxed. Previously, gamblers could deduct 100% of their losses up to the amount of their winnings, effectively only paying taxes on net profits. The new law lowers this deduction cap to 90%. This means that even if a gambler breaks even or experiences a net loss, they will now owe taxes on a portion of their winnings. For example, winning $5,000 and losing $5,000 will result in taxes owed on $500. Nevada Representative Dina Titus has proposed the FAIR BET Act to revert the deduction rate to 100%, gaining bipartisan support, but the bill is currently stalled in the House Ways and Means Committee. President Trump acknowledged the change but indicated he needed to consider the implications further. Gamblers should anticipate paying increased taxes on their winnings throughout 2026.
(Source：Pennlive)