Despite claims that many in the U.S. Senate didn’t know that a gambling tax set to cripple professional bettors was slipped into the “One Big Beautiful Bill,” Republicans shot down a Democratic proposal to eliminate the policy.
Key Takeaways
- U.S. Senator from Nevada wants to repeal the provision that requires gamblers to subtract 90% of their losses from 100% of their winnings
- Sen. Todd Young wants something in return if he’s to unblock the legislation
- Several lawmakers claim they didn’t know about the gambling tax change
Nevada Sen. Catherine Cortez Masto (D) said she was led to believe many Democrats were unaware of a tax law that will force bettors to deduct 90% of their losses against 100% of their winnings, so she proposed a bill to repeal the provision and return to the old 100%-100% tax rate.
However, Indiana Sen. Todd Young rejected Cortez Masto’s push for a Senate vote on the policy change, delaying the legislation, because he wants Democrats to accept other provisions, according to The Associated Press.
“I strongly support the underlying bill, but will have to object unless you can agree to my request,” Young said.
Cramming it in
Despite Republican leaders being the ones who pushed President Donald Trump’s wide-reaching tax and federal program bill through, the top-ranking Democrat on the Senate Finance Committee said even his partisan counterparts didn’t know about the policy.
“The fact is, when you rush a process like this, this way, and cram in all of these policies that you haven’t really thought about, you risk consequences for people back home,” Oregon Sen. Ron Wyden said. “That is what is going on here.”
The creation of a 10% margin has professional poker players and sports bettors up in arms about the new tax law. Social media was flooded with disgruntled professional gamblers after Trump signed the bill on July 4 as news leaked out that the new tax code was added on June 16 without several lawmakers and bettors realizing it.
Pushing back
Cortez Masto’s fight isn’t over. Senate Bill 2330, or the FULL HOUSE Act, which proposes reinstating the loss deduction allowance, has bipartisan support and is headed to the Senate Finance Committee.
The battle to repeal the gambling provision also continues on the other side of the legislature. In the House, Rep. Dina Titus introduced the FAIR BET Act on Monday in hopes of reinstating the previous tax code. HR 4304 is waiting to be heard in the House’s Ways and Means Committee.
Like Cortez Masto, Titus is also representing constituents in Nevada, where many professional gamblers reside.
“No one should have to pay taxes on money they didn’t win,” Titus posted on the social media site X earlier this week.
Lawmakers in favor of repealing the gambling tax will most certainly point to a major concern. The 10% margin could force sports bettors and poker players even more to the unregulated black markets and offshore gaming sites, where gamblers can avoid paying tax rates.
