A Letter From the Octagon
Dana White is not shy. The UFC president proved that again this week when he fired off a letter to President Donald Trump asking him to help fix a tax problem that could hurt Nevada badly.
White’s letter, dated May 11, 2026, praised Trump for getting the One Big Beautiful Bill Act (OBBBA) across the finish line last year. Then he got to the point. He wants Congress to reverse a provision in that very bill that caps gambling loss deductions at 90 percent for U.S. taxpayers.
“I write today to raise an issue we have discussed in the past,” White wrote to the president.
“The need to reverse the 90 percent limit on gaming loss deductions for US taxpayers included in the OBBBA.”
New: UFC President Dana White has sent a letter to President Donald Trump asking him to help reverse the 90 percent limit on gambling loss deductions for US taxpayers that became law last year.
The issue has been a concern for both bettors and the gambling industry itself. pic.twitter.com/WH9ukZi3mH
— Dustin Gouker (@DustinGouker) May 13, 2026
What the Law Actually Does
Before the OBBBA became law on July 4, 2025, the rules were simple. If you won $100,000 gambling and lost $100,000, you broke even. Your tax bill was zero. That made sense. You didn’t make any money.
Starting in 2026, the new law caps the deduction for gambling losses at 90 percent of winnings. That means if a gambler wins $100,000 and loses $100,000, they can only deduct $90,000 of those losses — leaving $10,000 subject to tax, even though they didn’t actually make a profit.
Tax experts call this “phantom income.” You pay taxes on money you never actually earned. For regular folks, that stings. For professional gamblers and high-volume bettors, it can be devastating.
One analysis found that a professional gambler’s tax liability could jump sharply under the new rules, cutting take-home pay nearly in half in some scenarios.
Why This Matters to Nevada
This isn’t just a tax nerd problem. Nevada’s entire economy is built around gaming. Las Vegas lives and breathes it. When you make gambling less attractive, fewer people bet. Fewer bets mean less revenue for casinos, hotels, restaurants — and the state itself.
White made that connection directly in his letter.
“The UFC supports a healthy, legal sports betting market to drive fan engagement, broadcast value, and sponsorships,” he wrote.
“When legal betting is discouraged, it hurts the ecosystem we’ve spent years building in partnership with state regulators and licensed operators.”
He also pointed out something that should concern every conservative who values limited government and free markets. This rule actually works against Trump’s own “No Tax on Tips” policy. Big winners tip big. But if gamblers know they’re going to get hit with a tax bill even when they break even, they’re less likely to gamble — and less likely to tip.
The Underground Market Problem
Here’s where it gets really important for conservatives who care about law and order.
The Tax Foundation warned that the provision:
“might cause individuals to owe taxes on imaginary income, incentivizing gamblers succeeding on thin margins to exit the US or participate in illicit markets.”
The analysis added that if even a fraction of professional gamblers take their bets outside legal U.S. markets, the result will be a net loss to tax collections and an increase in illegal activity.
Think about that. A law designed to raise $1.1 billion in revenue could end up pushing money underground. That is bad policy by any measure.
Bipartisan Red Flags — and a Path Forward
Lawmakers from Nevada were the first to raise red flags. At a July 2025 Ways and Means Committee hearing in Las Vegas, Chair Jason Smith made it clear there is bipartisan interest in fixing this. He stressed that both Republicans and Democrats recognize the unfairness and unintended consequences.
Three bills have already been introduced to restore the 100 percent loss deduction — the FAIR BET Act, the WAGER Act, and the FULL HOUSE Act. Two of them have bipartisan support.
White’s letter adds high-profile pressure to that push. When the president of the UFC writes to the White House about a tax fix, people pay attention.
Dana White said it plainly:
“You’ve always stood up for fighters, fans, and American businesses. This is another opportunity to do exactly that.”
He is right. Congress should fix this now.
The opinions expressed by contributors are their own and do not necessarily represent the views of Nevada News & Views. This article was written with the assistance of AI. Please verify information and consult additional sources as needed.
