'Big Beautiful Bill' Tax Change Worries Horseplayers
An amendment in the One Big Beautiful Bill Act has raised alarms among gamblers and horse racing stakeholders. The proposed change would limit how much of their losses bettors can deduct for tax purposes.
Industry voices warn that the measure could make it harder for professional and recreational gamblers to profit, potentially pushing more wagering activity offshore and hurting horse racing handle.
⏳ 2 mins read
📖 Published: November 26th, 2025
✍️ Updated: November 26th, 2025
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Report: 'Big Beautiful Bill' Contains Troubling Tax On Gambling
The amendment could hurt the sport of horse racing, according to NTRA CEO Tom Rooney.
Background And Key Details
An amendment in the One Big Beautiful Bill Act, which passed the Senate on Tuesday, would alter gambling tax rules in a way that makes it harder to profit, reports Newsweek.
The new amendment limits the amount gamblers are able to deduct to 90 percent of losses; thus, even if a gambler breaks even by winning $100,000 and losing $100,000 in a year, they would still be required to pay taxes on $10,000.
Current regulations allow a gambler to deduct 100 percent of losses, provided that number does not exceed their winnings.
Concerns From The Gambling And Racing Industry
The bill could push professional gamblers to offshore wagering accounts, professionals warned Newsweek.
“It is a big deal,” Tom Rooney, CEO and president of the National Thoroughbred Racing Association (NTRA), told the Thoroughbred Daily News. "We've let it be known to our friends on the hill that our sport is generated by the people that play the horses. And, if they're dissuaded in any way to do that, it's going to hurt our sport."
The next step is that the bill now returns to the House, which passed its own version, not containing the gambling tax rule, in May.
Reaction From Professional Gamblers
Professional poker player Phil Galfond took to social media to discuss the issue: "This is really bad. Whether you're a poker player, Daily fantasy sports player, a sports better, any kind of gambler – professional or recreational – but especially professional. And even if you are operator in one of these areas. It's quite scary."
