Senate Blocks Reversal of Gambling Loss Deduction Limits Impacting US Gamblers

President Donald Trump's recently signed "One Big Beautiful Bill Act" includes a controversial provision limiting gamblers to deduct only 90% of their losses against 100% of their gains for tax purposes, a change that has frustrated the gambling industry and sparked political debate. This provision primarily affects professional gamblers and high-stakes bettors who itemize deductions, potentially imposing significant tax liabilities on those who previously could offset all losses. Democratic Senator Catherine Cortez Masto attempted to pass a bill to reverse this tax change, but was blocked by Republican Senator Todd Young, leaving the issue unresolved and signaling ongoing partisan contention. The gambling industry warns this tax change could severely harm professional gambling, while the law's complexity has led many lawmakers to be unaware of the provision's inclusion. Meanwhile, the rise in legal sports gambling nationwide, fueled by a 2018 Supreme Court decision, has resulted in massive revenue growth and increased state tax income, illustrating the sector's growing economic importance. In parallel, other countries like Singapore have implemented robust, independent gambling regulators to mitigate risks, a contrast to Sri Lanka's pending Gambling Regulatory Authority Act, which critics say lacks true independence and effectiveness.