The Looming Threat: 2026 Tax Changes for Gamblers

As the calendar inches closer to 2026, the professional gambling community is facing a significant financial challenge. The heart of the issue lies in the upcoming tax adjustments, which threaten to alter the way gambling wins and losses are reported. With the clock ticking, concerns are mounting over the potential impacts on livelihoods.

Key Changes on the Horizon

• Reduction in loss offset: The ability to offset gambling winnings with losses will be reduced, affecting the financial outcomes for gamblers.
• Legislative action: Nevada’s legislators are actively seeking ways to reinstate full wagering tax deductions, showcasing the urgency of the situation.

The Financial Equation: Wins, Losses, and Taxes

Under the spotlight is a tax reform, known among the gambling circles as the “One Big Beautiful Bill,” which was signed into law by President Donald Trump. This reform caps the deduction of gambling losses at 90%, a stark change from the previous 100% offset. For a gambler with $100,000 in both wins and losses, this means facing federal taxes on $10,000 of those winnings—a new and unwelcome burden.

A Rally for Reversal

In response, US Representative Dina Titus (D-NV) has introduced the FAIR Bet Act, aiming to restore the full deduction limit. Despite bipartisan support, the bill’s progress remains uncertain, leaving many in the gambling community anxious as the implementation date approaches.

Voices from the Community: The Impact of Tax Changes

Professional gamblers are not taking these changes lightly. David Kaye, an online poker player, and Blaise Bourgeois, known for his poker prowess, alongside Rufus Peabody, a betting expert, have all voiced their concerns. They highlight not just the financial strain but the absurdity of being taxed on non-existent profits, drawing a parallel to how businesses deduct expenses to calculate taxable income.

“The new tax law fundamentally misunderstands the nature of professional gambling. It’s not just about the wins; the losses are just as real. Taxing unrealized profits could push the entire industry into a corner, with dire consequences for both players and the states that rely on gambling tourism,” said a group of industry experts.

Legislative Efforts and the Path Forward

The push for change has seen Nevada’s congressional delegation stepping up, with the FULL HOUSE Act mirroring the FAIR Bet Act’s goals in the Senate. Senators Catherine Cortez Masto and Jacky Rosen, alongside their colleagues, have emphasized the broader implications of the tax adjustments, highlighting the potential for negative impacts on tourism and the legal gambling market.

“Taxing individuals on money they don’t possess will not only stifle the tourism industry in states like Nevada but could also push poker tournaments to offshore locations and drive betting into the shadows of unregulated markets. With bipartisan support readily available, it’s imperative for our colleagues across both legislative chambers to act promptly to rectify this oversight,” Cortez Masto articulated.

Rosen added to the urgency, pointing out the flawed policy at the heart of the tax changes. The bipartisan bill they support aims to correct a detrimental provision that unfairly taxes casino players on their losses, threatening Nevada’s economy and the gambling industry at large.

Conclusion: A Call to Action

As 2026 approaches, the professional gambling community, backed by legislative allies, is rallying for change. The outcome of their efforts remains uncertain, but the stakes are undeniably high. The impending tax adjustments represent not just a financial hurdle for individual gamblers but a potential turning point for the industry and the states that host it. The time for action is now, to ensure that the future of gambling remains bright and fair for all involved.