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Started By
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Tax bill has gamblers confused and mad, may still have to pay taxes even if they lose.
Posted on 7/7/25 at 3:12 pm
Posted on 7/7/25 at 3:12 pm
LINK
A few sentences slipped into the 940-page tax bill approved by Congress this week could force some gamblers to pay income taxes even after losing money.
The provision came to light just a few days before the bill cleared the House and Senate, surprising industry officials and causing professional sports bettors to fear for their livelihoods. Gary Kondler, a Las Vegas-based CPA who prepares taxes for full-time sports bettors and poker players from across the country, described a week of “absolute chaos” fielding clients’ panicked calls.
Until now, gamblers have been allowed to deduct all of their betting losses from their declared income - meaning, bettors who win more than they lose over the course of a year pay taxes only on their profits. The new bill, which the House approved Thursday and President Donald Trump is poised to sign into law, allows gamblers to deduct just 90 percent of their losses while still making them pay income tax on all their winnings.
That makes it possible for gamblers who lose money to still owe taxes. Russell Fox, another Nevada-based accountant who specializes in gambling, explained that scenario. Under the new bill, Fox said, a gambler with $950,000 worth of winning wagers and $1 million of losing ones would have to pay taxes on the $950,000 while being able to deduct only $900,000 of the losses - meaning he or she would be forced to pay taxes on $50,000 of “phantom income” despite having lost that much money in reality.
A few sentences slipped into the 940-page tax bill approved by Congress this week could force some gamblers to pay income taxes even after losing money.
The provision came to light just a few days before the bill cleared the House and Senate, surprising industry officials and causing professional sports bettors to fear for their livelihoods. Gary Kondler, a Las Vegas-based CPA who prepares taxes for full-time sports bettors and poker players from across the country, described a week of “absolute chaos” fielding clients’ panicked calls.
Until now, gamblers have been allowed to deduct all of their betting losses from their declared income - meaning, bettors who win more than they lose over the course of a year pay taxes only on their profits. The new bill, which the House approved Thursday and President Donald Trump is poised to sign into law, allows gamblers to deduct just 90 percent of their losses while still making them pay income tax on all their winnings.
That makes it possible for gamblers who lose money to still owe taxes. Russell Fox, another Nevada-based accountant who specializes in gambling, explained that scenario. Under the new bill, Fox said, a gambler with $950,000 worth of winning wagers and $1 million of losing ones would have to pay taxes on the $950,000 while being able to deduct only $900,000 of the losses - meaning he or she would be forced to pay taxes on $50,000 of “phantom income” despite having lost that much money in reality.
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Posted on 7/7/25 at 3:13 pm to Eurocat
Posted on 7/7/25 at 3:15 pm to Eurocat
This makes professional gambling an unprofitable endeavor if what I’ve been reading is accurate.
Gambling is legal, professionals in the space should get equal tax treatment to any other industry. This is bad tax policy, which I’ve unfortunately said often in regards to this bill. Lots of bad shite in there.
Gambling is legal, professionals in the space should get equal tax treatment to any other industry. This is bad tax policy, which I’ve unfortunately said often in regards to this bill. Lots of bad shite in there.
Posted on 7/7/25 at 3:15 pm to Eurocat
Posted on 7/7/25 at 3:16 pm to Eurocat
Hopefully they figure out a way to do the same to fantasy sports so people finally shut the frick up about their betting and fantasy sports.
Posted on 7/7/25 at 3:20 pm to Eurocat
Sports betting tax law is quite ambiguous. Apparently you are supposed to report every single winning bet as income and you aren’t supposed to calculate a net/profit loss. I doubt many people do it by the book. I doubt many people report at all without being sent tax forms.
More people are going to say “frick it” and hope they aren’t audited.
More people are going to say “frick it” and hope they aren’t audited.
This post was edited on 7/7/25 at 3:24 pm
Posted on 7/7/25 at 3:23 pm to Eurocat
Good gambling is the devil's work anyway.
I just wish I didn't have to go so far to do it.
I just wish I didn't have to go so far to do it.
Posted on 7/7/25 at 3:25 pm to TheWalrus
quote:
Sports betting tax law is quite ambiguous. Apparently you are supposed to report every single winning bet as income and you aren’t supposed to calculate a net/profit loss. I doubt many people do it by the book. I doubt many people report at all without being sent tax forms. More people are going to say “frick it” and hope they aren’t audited.
How would the IRS even be able to actually (at least efficiently and accurately) audit gambling winnings/losses?
Posted on 7/7/25 at 3:28 pm to Eighteen
quote:
How would the IRS even be able to actually (at least efficiently and accurately) audit gambling winnings/losses?
I don’t think you really know how audits work
Posted on 7/7/25 at 3:29 pm to Eurocat
Just goes to show you how often politicians pay so little attention to detail
Seems like this happens all the time where a small clause is slipped into an house bill and they just fricking sign it
without reading all the details or implications.
Seems like this happens all the time where a small clause is slipped into an house bill and they just fricking sign it
without reading all the details or implications.
Posted on 7/7/25 at 3:31 pm to HoustonGumbeauxGuy
quote:
Just goes to show you how often politicians pay so little attention to detail Seems like this happens all the time where a small clause is slipped into an house bill and they just fricking sign it without reading all the details or implications.
What makes you think that this was an oversight??
Posted on 7/7/25 at 3:34 pm to The Pickwick
quote:
What makes you think that this was an oversight??
The provision was written by an Idaho legislator, where gambling isn’t legal. Legal states legislators should’ve fought this, hard. If sports gambling becomes unviable, that’s billions in lost revenue in those states. So there’s only 2 options; one, it was an oversight. Two, those politicians are complete retards. Not sure which is worse
Posted on 7/7/25 at 3:36 pm to Mingo Was His NameO
Nope, they know gamblers are degenerates and will gamble anyway. It’s a way for the govt to make more money without “increases” in taxes.
Posted on 7/7/25 at 3:38 pm to Eurocat
Say goodbye to the massive income Vegas receives from the WSOP. No professional will want to attempt to overcome this.
In my mind, they're just going to lose out on the tax money all together. Any professional knows that there is no way to overcome this and will just stop all together, thus 0 tax revenue from gambling. Losing gamblers don't care enough and aren't going to make their losses higher by paying these taxes. They'll just hope that they don't get audited.
If they wanted to get rid of professional gambling, then congrats I guess? Seems short sighted though.
In my mind, they're just going to lose out on the tax money all together. Any professional knows that there is no way to overcome this and will just stop all together, thus 0 tax revenue from gambling. Losing gamblers don't care enough and aren't going to make their losses higher by paying these taxes. They'll just hope that they don't get audited.
If they wanted to get rid of professional gambling, then congrats I guess? Seems short sighted though.
Posted on 7/7/25 at 3:38 pm to Eurocat
Oh well...
Posted on 7/7/25 at 3:39 pm to The Pickwick
quote:
Nope, they know gamblers are degenerates and will gamble anyway. It’s a way for the govt to make more money without “increases” in taxes.
The ones that gamble all the money pay taxes on their winnings. Chad throwing $10 on a parlay isn’t who’s paying taxes on gambling winnings
Posted on 7/7/25 at 3:41 pm to CR4090
quote:
Good gambling is the devil's work anyway.
What does that have to do with gov theft?
Posted on 7/7/25 at 3:42 pm to The Pickwick
quote:
Nope, they know gamblers are degenerates and will gamble anyway. It’s a way for the govt to make more money without “increases” in taxes.
I got to disagree here. Losing gamblers are just going to say screw it and not pay them. Professionals are the ones footing this tax bill and they are going to quit all together.
Posted on 7/7/25 at 3:45 pm to Eurocat
While I philosophically disagree with this aspect of the bill, sports gambling has jumped the shark so fricking bad I’m ok with it.
This post was edited on 7/7/25 at 3:48 pm
Posted on 7/7/25 at 3:51 pm to ATrillionaire
The government is evil personified.
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