The One, Big, Beautiful Bill Act (OBBA) includes a tax rule change that professional gamblers will detest. Previously, gamblers were allowed to deduct 100% of their losses, up to the amount of their gambling winnings. Under the OBBBA, beginning in 2026, gamblers can deduct from their winnings only 90% of their losses for a tax year. This means some gamblers could owe tax even if they break even or incur a net loss. Representative Dina Titus (D-NV) has introduced a bill, the FAIR BET Act, to restore the 100% loss deduction for gambling losses. Stay tuned.
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