Senate Republicans block bid to reverse tax hike on gamblers

Senate Republicans on Thursday blocked a Democratic effort to reverse a newly passed tax law provision that professional gamblers say could threaten their livelihoods.

The provision, part of a sweeping tax and spending cuts bill signed into law last week, limits the amount of gambling losses that can be deducted from winnings to 90%, starting in 2026. Previously, taxpayers could deduct 100% of their losses up to their winnings.

Senator Catherine Cortez Masto, a Democrat from Nevada, sought unanimous consent to pass a bill restoring the full deduction, but was blocked by Republican Senator Todd Young of Indiana.

“My understanding is many Republicans, many Democrats did not even know it was part of that process,” Cortez Masto said, referring to the 900-plus-page bill, which lawmakers are still analyzing.

The new rule means that gamblers who break even could still owe taxes. For example, someone who wins and loses $100,000 in the same year would now only be able to deduct $90,000, leaving them taxed on $10,000 in theoretical “profit.”

“This new amendment to the One Big Beautiful Bill Act would end professional gambling in the U.S. and hurt casual gamblers, too,” professional poker player Phil Galfond said on social media.

This new amendment to the One Big Beautiful Bill Act would end professional gambling in the US and hurt casual gamblers, too.

You could pay more in tax than you won.

Contact your representative quickly. pic.twitter.com/U5yToBZDcQ

— Phil Galfond (@PhilGalfond) July 1, 2025

The change, tucked into the bill by Senate Finance Committee Chair Mike Crapo, is projected to generate more than $1.1 billion over eight years. Still, the Congressional Budget Office estimates the overall bill will add $3.3 trillion to the federal deficit from 2025 to 2034.

Democrats criticized the rushed process and lack of transparency.

“Now I see Republican senators walking all over the Capitol saying they didn’t even know anything about this policy,” said Senator Ron Wyden, the top Democrat on the Senate Finance Committee. “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.”

Young defended his objection, saying he supports the policy and would only agree to repeal it if Democrats conceded on other provisions. “I strongly support the underlying bill, but will have to object unless you can agree to my request,” he said on the Senate floor.

Cortez Masto has introduced a bill to reverse the change through regular legislative channels, with support from both parties. In the House, Representative Dina Titus, also a Nevada Democrat, has filed similar legislation.