Here's What Tax Experts Want Poker Players to Know About Trump's 'Big Beautiful Bill'
Table Of Contents
Gambling tax experts are warning poker players to be aware of legislation that "could have a major effect on the industry" after Congress passed the Trump administration’s Big Beautiful Bill (OBBBA) that, among other things, caps gambling loss deductions at 90% of winnings.
The U.S. House of Representatives passed the bill with a 218-214 vote on Thursday after delaying a vote for several hours the previous night.
Trump's 'Big Beautiful Bill' Could Be Devastating for US Poker Players
Impact on Recreational & Professional Poker Players
Ray Kondler of Kondler CPA, a Las Vegas-based CPA firm specializing in gambling taxation, told PokerNews he expects that "Big Beautiful Bill" will "have a major effect on the industry," both for recreational and professional poker players.
“It will negatively affect the recreational player," he told PokerNews' Keith Becker in an interview during Day 1a of the WSOP Main Event. "Because in the past, where you could deduct 100% of your losses, now you can deduct 90%. So basically you’re paying income tax on phantom income you might not have ever have made.”
Kondler added that the professional poker players will be hit the hardest, both due to their play volume and other taxes and premiums they may owe on Social Security and Medicaid. “So it’s a much bigger hit for professionals.”
Poker players are far from the only gamblers who will be impacted by the bill, according to Kondler, who noted the sports bettors could be pushed to offshore gambling sites.
“I think it could affect gambling big time, in all gambling. Because people, if they always have to show profits, (it) might negatively impact them coming to casinos, playing online ... So it could have a major effect on the industry.”
Kondler added that he didn't think the bill was "catastrophic" and that it "maybe could be rewritten because there (are) some ambiguities in the bill, the way the 90% is written.”
Can It Be Fixed?
Tax consultant Russell Fox, who is an Enrolled Agent (a federally licensed tax preparer) who owns his own consulting and tax practice, Clayton Financial and Tax, emphasized that while the legislation will not affect 2025 tax returns, it poses a significant threat moving forward.
"No one in the industry likes this," Fox wrote in a X thread posted on July 3. "The negative ramifications for this industry are obvious, and they have high-powered lobbyists. And several casino operators are known supporters of the current Administration. I strongly suspect they will be working to reverse this."
According to Fox, the potential fallout is clear: the legislation would negatively impact high-stakes gambling and casual winners alike. "Vegas was built on the dream," he said, warning that this dream could be diminished if the law is allowed to stand.
Fox remained cautious, estimating only a 25% chance that the law would be reversed in 2025. Still, he emphasized that efforts to overturn it are likely inevitable given the size and influence of the U.S. casino industry.
Fox believes the issue has bipartisan opposition, especially in states like Nevada, where gambling is a critical part of the economy. "I can't see any of our legislators, Republican or Democrat, liking this measure," he added.
He outlined possible legislative paths for reversing the change, including another reconciliation bill expected this fall or a "technical corrections" bill, a standard legislative tool often used to amend or fix tax law.
Despite the uncertainty, Fox remained optimistic. "I'm not doom and gloom; this is a storm cloud that has a good chance of clearing up," he concluded.
Nevada Congresswoman Dina Titus, a critic of the bill, said in an interview with News Nation that she was working on a fix to the gambling portion of the tax bill.
"Well we're going to try to take it out. It could then go back to rules," said Titus, a Democrat. "We can't now introduce a separate bill. But it pushes people into the black market if they don't do regulated gaming because they have a tax disadvantage. And the black mark doesn't pay taxes, isn't regulated, doesn't have Problem Gaming. So it's bad for the industry as well as for the player."
American Gaming Association Supports Tax Bill
The American Gaming Association (AGA) issued a measured statement in response to the passage, commending congressional leaders for their efforts.
According to the AGA, the tax provisions included in the bill will "support consumers, encourage business innovation and investment, and strengthen U.S. competitiveness."
While broadly supportive of the legislation, the AGA acknowledged the importance of ongoing collaboration with lawmakers to address key concerns, particularly changes related to wagering deduction losses.
The AGA's support of the controversial tax bill was widely criticized on social media by gamblers and poker players, including American tournament pros Chris Brewer, Rob Gardner and Jeffrey Stellwagon.
