A conservative advocacy group linked to former Vice President Mike Pence now urges a full tax deduction repeal. The group, Advancing American Freedom, backs the One Big Beautiful Bill Act’s new 90 percent loss limit.
Moreover, it proposes eliminating the remaining deduction entirely. The proposal would tax gamblers on their total winnings regardless of losses.
Furthermore, the group circulated a memo arguing that deductions for gambling distort the tax code and reward unproductive behavior. It asserts that taxpayers should not subsidize sports betting or poker losses.
Meanwhile, critics in Congress have begun defending gambling tax breaks. Representative Dina Titus introduced the bipartisan FAIR BET Act to restore full deductibility. Senator Catherine Cortez Masto supports similar legislation to undo the cap.
Additionally, Representative Andy Barr has endorsed the WAGER Act, which seeks to restore the prior wagering loss limitation rules. Barr argues that the current restrictions unfairly punish casual gamblers and suppress legal betting markets.
Supporters of the bill claim it would return the industry to pre-cap norms, ensuring fairer tax treatment for all players.
How Removing the Gambling Tax Deduction Affects Online Casinos
Importantly, this debate affects industries offering online casino games and online slot games. Eliminating tax deductions can help the online casino industry in several ways. For one, it encourages operators to innovate marketing and promotions, driving customer engagement to make up for higher tax burdens.
In addition, stronger returns to operators allow investment in better online slot games and improved player experiences. Thus, firms may turn to better loyalty programs and enhanced gameplay to attract gamblers.
Meanwhile, the American Gaming Association voiced support for the OBBB Act’s tax provisions, stating they “support consumers, encourage business innovation and investment, and strengthen U.S. competitiveness”.
Pence’s group continues pushing lawmakers for zero deductions. The future of gambling tax policy appears uncertain.
However, the changes could significantly shift dynamics in the online casino games sector.
Last Updated on by jonathan r
