President Trump is set to sign the sweeping One Big Beautiful Bill Act during a special Independence Day ceremony at the White House. While the event celebrates his second-term triumph, one provision in the bill could severely hit poker players and other gamblers.

What’s changing?

Under current tax rules, gambling losses can be fully deducted from winnings to determine taxable income. Under the new law, passed in a sprawling 940-page package, that deduction is limited to just 90% of losses.

Here’s why that matters:

• Say you win $100,000 and lose $80,000 in a year.
• Today, you’d be taxed on the net $20,000 profit.
• Starting next year, though, you’ll only deduct $72,000 of losses — meaning you’re taxed on $28,000, even though your actual net gain is still $20,000.

The fallout:

• Professional gamblers — who operate on slim margins and record massive bets — warn this could derail their business model entirely.
• Recreational players aren’t exempt; many could end up owing more in taxes than they actually earned.
• Poker pro Phil?Galfond issued an ominous warning on X, saying the amendment could “end professional gambling in the US and hurt casual gamblers, too,” adding it’s “possible to pay more in tax than you won.”

The broader picture:

This change is part of a larger $1.1 billion revenue boost built into the bill to help offset other tax cuts. But it’s already drawing sharp criticism from industry groups like the American Gaming Association, which has pledged to work with Congress to amend the rule in the future.

As Trump celebrates July Fourth with his signature “big beautiful” legislation, the law’s impact on gamblers — especially poker pros — will likely spark a heated debate in tax policy circles.

Additional Information

• Trump plans to sign his tax and spending cut bill at the White House July 4 picnic: AP News
• Lose bets, pay taxes? New bill has some gamblers apoplectic: Washington Post
• Bettors sound alarm over $1.1B tax hike in Trump’s Big Beautiful Bill: New York Post
• One Big Beautiful Bill Act: Wikipedia