Politics  | 

'Big Beautiful Bill' Is a Big Problem for Poker Pros

'This is just a completely illogical bill. You're taxing people who lose money'
Posted Jul 25, 2025 10:35 AM CDT
Poker Pros Fume Over New Tax Rule
Michael Mizrachi poses with his World Series of Poker Main Event winnings after defeating John Wasnock on Wednesday, July 16, 2025, in Las Vegas.   (Chase Stevens/Las Vegas Review-Journal via AP)

President Trump's recently signed "One Big Beautiful Bill" has sparked unease among professional poker players and gamblers, thanks to a little-noticed tweak buried in its 940 pages. The law, set to take effect next year, reduces the amount of gambling losses that can be deducted from winnings to 90%. For career players—who often experience large swings between wins and losses—this means they could still owe taxes even if their net income is zero. Under the change, somebody who wins $100,000 in tournaments and loses $100,000 will be taxed on $10,000 income, NPR reports.

High rollers, who play million-dollar games, could face even steeper tax bills in bad years despite not making a profit. "This is just a completely illogical bill. You're taxing people who lose money," professional poker player Daniel Negreanu tells NPR. "We don't mind paying taxes, but like, on actual money. Nobody thinks it's fair to pay taxes when you lose money." World Series of Poker CEO Ty Stewart says players are frustrated, and tax expert Russell Fox calls the change "bad for just about everybody in the industry." He says that for some people who make a living gambling, "the math may stop working."

The tax change, which also applies to sports gambling and other betting, is expected to raise $1.1 billion over a decade, though critics say it could reduce revenue by driving gambling activity offshore, the New York Times reports. Lawmakers and industry groups were blindsided, as the provision was inserted late via the Senate Finance Committee to satisfy budget rules. Efforts to reverse the change are underway: Republican Sen. Ted Cruz is co-sponsoring a fix, and the American Gaming Association has pledged to work with Congress. Poker pro Phil Hellmuth, who calls the change "poker's death tax," says Cruz texted him to apologize for the provision.

Read These Next
Get the news faster.
Tap to install our app.
X
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.

X