Contentious Scenario for Sport Wagerers Confronting Tax Conundrums
In the world of sports and betting, a significant change is looming as the U.S. Congress considers a new tax bill. Known colloquially as "Trump's big, beautiful bill," this legislation includes a provision that could have far-reaching effects on the sports betting ecosystem.
The proposed change would limit the amount gamblers can deduct from their winnings to 90% of their losses. For instance, if a gambler won $100,000 but lost $100,000 during the year, they would currently owe no taxes on net winnings, but under the proposed bill, they would have to pay taxes on $10,000—effectively reducing deductions and increasing tax liabilities for gamblers.
This adjustment could make it more challenging for professional gamblers, including poker players and sports bettors, to turn a profit, as they will have to pay taxes on a larger portion of their winnings. Industry experts caution that this could drive these gamblers to seek out offshore or unregulated online casinos that might not enforce such tax rules, which in turn could negatively impact domestic gambling hubs like Las Vegas and Reno, potentially affecting jobs and the local economy.
As of early July 2025, the Senate version of the bill contains this tax provision, but the House version did not include it. The House must still pass the bill, with or without revisions, before it can be signed into law by the president. If passed as currently proposed, these tax changes will take effect in the next tax year.
In the sports betting sphere, several analysts are offering insights and predictions. Adam Burke discusses betting alternate win totals and the effects of the new kickoff rules. Matt Youmans and top bookmakers are focusing on the Super Bowl futures market. Bill Krackomberger is expected to appear on A Numbers Game at 11-noon ET.
Meanwhile, VSiN's hosts and writers, including Zach Cohen, Steve Makinen, and Josh Appelbaum, are providing Best Bets for various events, such as Wimbledon, horse racing, and MLB games. Greg Peterson has four Best Bets for today's MLB slate, while "Mr. Ed" Sehon and 1/ST BET handicapper Jeremy Plonk have posted picks for today's Saratoga card.
Gill Alexander is also doing an MLB mid-season report with Mark Borchard on the Beating The Book podcast. In addition, they are discussing betting-relevant stats such as top ROI teams, best/worst first 5 inning teams, and most reliable umpires for Overs and Unders.
Best Bets from VSiN's hosts and writers are available for download, and horse racing coverage is sponsored by 1/ST BET, offering a $200 sign-up bonus. As the proposed tax bill progresses through Congress, sports enthusiasts and bettors alike will be keeping a close eye on its potential impact on their favourite pastimes.
[1] Cohen, Z. (2025). Zach Cohen's analysis on the Lakers' signing of Deandre Ayton. Retrieved from https://www.vsin.com/nba/lakers-sign-ayton-cohen-analysis/ [2] Appelbaum, J. (2025). Josh Appelbaum provides insights on NFL betting splits. Retrieved from https://www.vsin.com/nfl/appelbaum-nfl-betting-splits/ [3] Burke, A. (2025). Adam Burke discusses betting alternate win totals and the effects of the new kickoff rules. Retrieved from https://www.vsin.com/nfl/burke-alternate-win-totals-kickoff-rules/
- The proposed tax bill, if passed, could significantly affect the finance of sports betting, as professional gamblers, such as sports bettors, would have to pay taxes on a larger portion of their winnings, potentially driving them to seek out offshore or unregulated platforms.
- In the sports betting world, analysts like Adam Burke are offering insights on alternate win totals and the effects of new rules, while resources like VSiN's Best Bets from Zach Cohen, Steve Makinen, Josh Appelbaum, and others continue to provide predictions for various events like Wimbledon, horse racing, and MLB games.
