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New York Post
5 hours ago
- New York Post
Bettors sound alarm over $1.1B tax hike in Trump's Big Beautiful Bill: ‘This will kill professional gambling'
Gamblers sounded the alarm over a new provision in President Donald Trump's recently passed spending bill that imposes a $1.1 billion tax increase by limiting the deductibility of gambling losses. The change, buried in the Senate GOP's version of the sweeping 'Big Beautiful Bill,' will cut their net winnings and potentially charge income tax when they break even or lose money, according to Bloomberg. Under current law, gamblers are allowed to deduct 100% of their losses, up to the amount of their gambling winnings. But the final version of the legislation — set to be signed by Trump during a White House ceremony Friday — modifies that rule. Advertisement 4 A provision tucked into President Trump's Big Beautiful Bill will raise taxes on winnings earned from gambling. AP Beginning in 2026, only 90% of losses will be deductible, meaning some gamblers could owe taxes even when they break even or incur a net loss. 'I've spoken to many clients and they're very concerned,' Zachary Zimbile, an accountant with experience in gambling regulations, told Bloomberg. 'If you add a 10% penalty, it's going to eat into a lot of their profit.' Advertisement Examples included in the legislation show the potential consequences. Under the current system, a gambler who wins $100,000 and loses $100,000 would report zero taxable income. Under the new rule, that same gambler would owe taxes on $10,000. Similarly, someone who wins $500,000 and loses $500,000 — breaking even — would owe taxes of $50,000. Even in cases where losses exceed winnings, taxes would still be owed. Advertisement A gambler who wins $200,000 and loses $210,000 would owe taxes on $11,000, because the deduction for losses would be capped at $180,000. 4 The GOP-led House of Representatives approved a final version of the spending bill on Thursday. AFP via Getty Images The change sparked significant pushback from gamblers, particularly professionals who regularly handle large volumes of both wins and losses. Phil Galfond, a professional poker player who has racked up nearly $3 million in live tournament winnings, wrote on X: 'You would make $200,000 during the year, [but] you would pay tax as if you made $700,000.' Advertisement Rufus Peabody, a professional sports bettor, highlighted the impact of the new tax provision on social media, explaining that it 'hits the losers too.' 'Someone can lose money gambling, and still owe taxes on it,' Peabody wrote on X. Doug Polk, who has won more than $10 million in live poker tournaments, wrote that the gambling provision 'will kill professional gambling. This will negatively impact THOUSANDS.' 4 President Trump is expected to sign the bill into law on Friday. Getty Images 'If you care about poker now is the time to get this out to every single corner of the internet,' Polk wrote on his X account. 'This has been snuck into the bill and if it passes tens of thousands of people will instantly lose their careers.' While professional gamblers are likely to feel the brunt of the new rule due to the scale of their activity, amateurs with high-volume play could also be affected in years when they have significant wins and losses. The US gambling industry has seen substantial growth in recent years, boosted by the expansion of online platforms and the popularity of regulated betting services. Companies such as FanDuel and DraftKings have helped drive the surge. Advertisement According to the American Gaming Association, commercial gaming revenue in the US reached nearly $72 billion in 2024, marking the fourth consecutive record-breaking year. 4 The new legislation will limit deductions for gambling losses to 90% of winnings, starting in the 2026 tax year. Studio Romantic – 'We commend congressional leaders on the passage of the One Big Beautiful Bill Act,' the American Gaming Association said in a statement provided to The Post. 'Our industry's ability to sustain quality jobs and deliver economic benefits is significantly enhanced by the tax policies of OBBBA that support consumers, encourage business innovation and investment, and strengthen US competitiveness.' Advertisement The AGA said that 'we look forward to President Trump's expected signing and will work closely with Congress in the coming months to address the changes to wagering deduction losses and further modernize the tax code.' The Post has sought comment from the White House and DraftKings. A spokesperson for FanDuel declined to comment.
Bloomberg
6 hours ago
- Bloomberg
Paul: Indian Wealthy Class is Growing Travel Market
The luxury travel category is booming, with hotels, airlines and the industry chasing so-called aspirational holidaymakers, who're prepared to splurge on vacations. Demand is being driven by increasing wealth in emerging markets, especially in India. Priya Paul, chairperson of Apeejay Surrendra Park Hotels, which operates a chain of luxury boutique hotels in India, is hoping to capitalise on this trend, saying that she plans to 'double' the number of properties offered by the company over the next five years. Paul spoke to Bloomberg's Francine Lacqua. (Source: Bloomberg)
Bloomberg
7 hours ago
- Bloomberg
Allegra Stratton: Strawberries and Cream for Labour
We could all do with some better news, and Bloomberg is here to serve. In a second you'll hear that strawberries are enjoying a bumper year from the latest addition to the Bloomberg family of newsletters, the Business of Food (roll up, roll up and subscribe here if you like your geopolitics told through chocolate, coffee, berries and butter). But before that, another bumper crop: this time of economic data. You'll remember our tracker on how this government is doing, first published in March. Put to one side the dismal diet of rebellions, climbdowns and tears we've watched open-mouthed this week: our team tells us that having combed through as much data as they can get their hands on, things are actually looking slightly up for this government.
