Hidden in the recesses of the One Big, Beautiful Bill that was recently passed by Congress is a major change to how gambling winnings are taxed. It’s a change that makes breaking even a loser’s prospect that has won praise from the American Gaming Association and downright ire from Nevada’s Congressional delegation.
Under the new tax code an additional ten percent tax will be levied on gambling winnings even if they lost money or broke even. This is a huge deal for professional gamblers who generally operate on very narrow margins.
The tax increase was, however, heartily welcomed by the American Gaming Association (AGA). On social media the group praised the move saying, “We commend congressional leaders on the passage of the One Big Beautiful Bill Act. 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 U.S. competitiveness.”
Nevada Congresswoman Diane Titus spoke out against the bill saying, “It pushes people into the black market if they don’t do regulated gaming because they have a tax disadvantage. The black market doesn’t pay taxes, it isn’t regulated and doesn’t help with problem gaming. It’s bad for the industry and it’s bad for the player.”
Titus is correct in her assumption that the new law will drive gamblers to the black market. This is an interesting point because that’s something that the AGA is usually very concerned about. Regardless, the gambling tax hike is the law of the land. Though Titus says she’ll fight the measure, her odds of success seem very slim.