A Surprising Problem Hidden in the Budget
You know how sometimes the government slips things into big bills that nobody notices until it’s too late? Well, that’s happening right now with President Trump’s budget bill.
The budget reconciliation bill passed the Senate by 51 votes to 50 on Tuesday following weeks of negotiations. But buried deep inside this massive piece of legislation is something that has professional gamblers and poker players up in arms.
The bill changes how gamblers can write off their losses on their taxes. Right now, if you win $100,000 playing poker but lose $100,000, you break even and don’t owe extra taxes on gambling.
Under current rules, gamblers who itemize can deduct all their losses against their winnings, meaning if they break even (or lose money) in a given year, they don’t owe additional money in taxes. That seems fair, right?
What’s Actually Changing
The bill’s Section 70014 would update the tax code, capping the deduction to 90% of losses. Here’s how this works in plain English. Let’s say you’re a poker player who wins $100,000 and loses $100,000 in a year. You broke even. But under the new rules, you would owe taxes as if they made $10,000.
Professional poker player Phil Galfond explained it this way:
“Let’s say that over the course of all the sessions that we played throughout the year, we won $5.2 million and we lost $5 million dollars for a net of $200,000.
Now, we would pay as if we won $5.2 million, minus 90 percent of $5 million, which is $4.5 million for a fake net of $700,000… So you would make $200,000 during the year and pay tax as if you made $700,000.”
That’s not a typo. Someone who actually won $200,000 would pay taxes as if they won $700,000.
Why This Matters to Conservatives
This hits several core conservative principles. First, it’s a tax increase disguised as tax reform. Congressional scorekeepers have calculated it will net the government $1.1 billion through 2034. The government is essentially taxing money that people didn’t actually earn.
Second, it’s government picking winners and losers. This change doesn’t hurt the casino owners or big gambling companies. It hurts individual entrepreneurs who make their living playing poker or betting on sports. These are people running small businesses, often from their homes.
Third, it’s terrible policy that will push Americans toward illegal markets. The amendment could push professional gamblers toward offshore, unregulated gambling operators. Instead of keeping this activity in America where it’s regulated and taxed, we’re driving it overseas.
The Real-World Impact
This isn’t just about rich poker players. Poker player Doug Polk wrote in a post on X to Texas Representative Chip Roy:
“This will negatively impact THOUSANDS of Texans”.
Chip, I am in your district.
There is a provision in the Senate version that will kill professional gambling. This will negatively impact THOUSANDS of Texans. Please look at this and help remove this senseless provision. pic.twitter.com/NRf8a4hWaG
— Doug Polk (Code Doug) (@DougPolkVids) July 1, 2025
We’re talking about regular Americans who’ve built careers in a legal industry.
Professional gambler Rob Pizzola said on X:
“Not just pros. Not just high rollers. Everyone”.
Even casual players who have a good year but then a bad year could get hit with phantom taxes.
Derek Stevens, who owns several Las Vegas casinos, is worried too. This could hurt Nevada’s economy as professional players move their action elsewhere.
What Critics Are Saying
Nevada Democratic Congresswoman Dina Titus called this “a provision that was slipped into the Senate amendment” and said “I’m working on a legislative fix that fairly treats gaming losses in the tax code”. Even Democrats from gambling states think this goes too far.
The American Gaming Association, which represents the casino industry, hasn’t commented yet. But individual casino owners are speaking up because they know this hurts their best customers.
What Happens Next
The House version of the bill does not currently contain provisions concerning professional gambling. So there’s still time to fix this. The House has to approve the Senate’s changes before Trump can sign it.
Trump has repeatedly expressed his hope that Congress can pass the bill by July 4, but he acknowledged on Tuesday that this deadline would be “very hard” to meet. The rushed timeline means fewer people are paying attention to provisions like this.
Why Government Shouldn’t Pick on Gamblers
Conservatives should oppose this for several reasons. It’s a stealth tax increase on small business owners. It drives American business overseas to unregulated markets. And it shows how the government can sneak tax hikes into popular bills when nobody’s watching.
Gaming is a legal industry that employs hundreds of thousands of Americans. Professional gamblers are entrepreneurs running small businesses. They deserve the same fair tax treatment as any other business owner.
What You Can Do
Call your representative in the House. Tell them to remove Section 70014 from the budget bill before they vote on it. This provision wasn’t in the original House version, so there’s no reason it needs to stay.
If you live in a state with casinos or legal gambling, this affects your local economy. Nevada, New Jersey, Pennsylvania, and other gaming states will lose business to offshore sites.
This is exactly the kind of government overreach that conservatives should oppose. It’s a hidden tax increase that hurts small business owners and helps foreign competitors. That’s not making America great again.
This article was written with the assistance of AI. Please verify information and consult additional sources as needed.
