New Tax Law Could Have You Paying For Winnings You Don’t Have

As part of the recently passed “Big Beautiful Bill,” gamblers can now only deduct 90% of their losses when filing taxes.

Sports bettors, poker players, and gamblers across the country are up in arms about the new policy bill that is heading to Trump’s desk. A new tax law (part of the “Big Beautiful Bill”) was amended in the Senate which now only allows bettors to deduct 90% of their losses on their taxes compared to 100% previously.

So let’s say you hit a longshot parlay for $100,000 and over the course of the year you lose that $100,000. Your net gain was $0 and in previous years, you owed no taxes because you could deduct all of your losses. Now, you’d only be allowed to deduct $90,000 in losses which means you still owe taxes on $10,000 even though those winnings aren’t real anymore.

Now this primarily affects those who itemize their taxes, not those who can take the standard deduction but even casual bettors will ultimately feel the pain even if this doesn’t directly affect them during tax season. If sports bettors reduce their action, either by abstaining from betting or going back to offshore accounts, then sportsbooks will feel the squeeze. When they do, you might see more books start implementing higher holds (i.e. -120 on both sides of a spread instead of -110 or even more reduced payouts on parlays). If you don’t think this is a big deal, I urge you to watch our videos on the hold and implied probabilities.

We’re officially in a new era. Breaking even isn’t good enough. You need to win just to avoid paying taxes on your own losses. Now more than ever, you need a strategy to consistently win and turn a profit and we’re to help. Our educational articles, sports betting models, and weekly podcasts are all meant to make you a sharper bettor and achieve profits.

Whatever you do, be sure to stay informed and stay sharp. And as always, good luck.