But while the corpus of the tax legislation largely deals with things such as individual tax rates and business provisions, it also includes a measure that says bettors can only deduct 90% of their losses against 100% of their gains.

Until Trump signed the law, gamblers could deduct a full 100% of their losses if they itemized their tax returns. So the inclusion of the provision came as a bit of a surprise, especially to the gambling industry, which grew in recent years as sports betting became more mainstream.

“It’s a little odd that this was snuck into the bill,” Alex Durante, a senior economist at the Tax Foundation, told the Washington Examiner.

Notably, the change wouldn’t be felt by most recreational gamblers, but the subset of the industry that deals with big wins and losses and itemizes taxes would take a hit.

For example, if a taxpayer has $200,000 in gambling losses one year and $200,000 in winnings, under the change, that taxpayer would still be on the hook for $20,000 because just 90% can be deducted.

“In general, this is probably not going to affect a lot of taxpayers, because first of all, the particular deduction is only available if you itemize your deductions,” Durante said.

Notably, the 2017 Tax Cuts and Jobs Act greatly expanded the standard deduction. And the most recent Republican tax legislation even further incentivized taking the standard deduction over itemizing.

“It’s primarily going to be targeting people, like professional poker players, or people who bet professionally,” Durante added.

Martin Harris, a part-time instructor at the American Studies Program at the University of North Carolina at Charlotte, told the Washington Examiner that while only the major gamblers might be affected by the change, those customers mean big business for gaming companies and casinos.

“I guess those are the customers that the casinos are most concerned about, the ones who are losing the most,” Harris said.

The American Gaming Association released a statement praising the new law and its potential to benefit the industry, although the group also said it will “work closely with Congress in the coming months to address the changes to wagering deduction losses and further modernize the tax code.”

Rep. Dina Titus (D-NV) has already been working to fix the issue. She recently introduced the Fair Accounting for Income Realized from Betting Earnings Taxation, or FAIR BET, Act. The bill would fully restore gamblers’ ability to deduct 100% of their losses.

“This common-sense legislation will bring fairness back to gaming taxation, making sure that gamblers can fully deduct losses when they report their winnings,” Titus said. “It gives everyone — from recreational gamblers to high-stakes gamblers — a fair shake. We should be encouraging players to properly report their winnings and wager using legal operators.”

Titus, who represents Nevada’s 1st Congressional District, covering the eastern Las Vegas area, also said the change to 90% deductibility could push people to use unregulated gambling platforms or not report their winnings, which could cut against the yearslong push to better regulate legal gambling.

The AGA also signed on to the legislative push.

“The American Gaming Association applauds Congresswoman Titus for introducing the FAIR BET Act,” the group said in a statement. “We are committed to working with Congresswoman Titus, other congressional leaders, and the Trump Administration to restore the long-standing tax treatment of gaming losses.”

Across the Capitol, Sen. Catherine Cortez Masto (D-NV) is pushing to use unanimous consent to pass legislation that would kill the gambling provision in the One Big Beautiful Bill Act.

While the 90% deduction provision would only affect a small swath of taxpayers, there are concerns that it could cause some gamblers to shy away from reporting income and move out of the legal sector.

Peter Schoenke is a member of the Fantasy Sports & Gaming Association’s board of directors and the chairman of the group’s government affairs committee. He told the Washington Examiner that the FSGA would support a repeal of the new tax change.

“Our association is for legal, online, regulated sports betting,” Schonenke said. He warned that a tax change such as this could cut into that by leading gamblers to go offshore, where there aren’t the same consumer protections in place.

THE WINNERS AND LOSERS OF THE ‘BIG, BEAUTIFUL BILL’

The provision, and the push to undo it, comes as legal gambling, particularly in the form of sports betting, has become more of a part of U.S. culture and society.

The transition toward legal sports betting began in 2018 when the Supreme Court ruled that a 1992 law prohibiting the activity was unconstitutional. That landmark decision paved the way for states to legalize sports betting, and each year, more and more states have begun offering residents the opportunity to put some skin in the game.