Gamblers fear GOP megabill will force them offshore

Professional gamblers say a tax change tucked into the One Big Beautiful Bill could wipe out their profits and drive them toward offshore betting sites — threatening an industry that reportedly raked in nearly $115 billion last year.

The Senate-passed act includes a provision limiting gamblers’ ability to write off losses to 90% of winnings, meaning that if they break even, gamblers would still owe taxes.

Under current rules, players can deduct losses up to their winnings, letting them avoid taxes if they come out even.

Poker pro Phil Galfond warned the change would force players to pay taxes on “phantom” winnings, hitting high-stakes professionals who already walk a thin line between profit and loss.

“Now we would pay as if we won $5.2 million, minus 90% of $5 million, which is $4.5 million for a fake net of $700,000,” Mr. Galfond explained in a video on X. “So you would make $200,000 during the year and pay tax as if you made $700,000.”

He called the proposal “the end of many pro gamblers’ careers,” per Newsweek.

The bill on Thursday was awaiting a vote in the House, which passed its own version in May without the gambling language.

Doug Polk, another well-known poker player, agreed with Mr. Galfond on X, arguing that “tens of thousands of people will instantly lose their careers” if the bill becomes law.

“We need to rally together now as the poker community,” he posted on the platform.

Critics argue the measure would push gamblers toward unregulated offshore sites while cutting into Nevada’s casino revenue.

The American Gaming Association says the gambling industry supports thousands of jobs and state tax revenue, much of it concentrated in cities like Las Vegas and Reno.

Rep. Dina Titus, Nevada Democrat, said the measure would punish people who report gambling income honestly and damage local economies.

“This is just another attack on gaming and tourism and on districts like mine that rely on these industries,” she said. “This also punishes people who are trying to do the right thing by reporting gambling on their taxes, pushing them towards offshore outlets … which, unlike legitimate gambling sources, do not invest in bricks and mortar, pay state taxes, hire union labor, or contribute to problem gaming efforts.”

Casino owner Derek Stevens, who operates Circa, The D and Golden Gate in downtown Las Vegas, also expressed serious concern about the provision’s impact.

Mr. Stevens, who hosted President Trump at Circa in January, backed the president’s push to eliminate federal taxes on tips for service workers.

“If Republicans are unwilling to accept this amendment, I will pursue stand-alone legislation to fix this bad policy,” Ms. Titus told the Las Vegas Review-Journal.

President Trump is urging Congress to pass the budget by Friday, but admitted this week that meeting the deadline would be “very hard.”