08 Jul 2025 There is a new, real threat to poker in the United States, and it's not bad beats or bots. It comes from Washington, D.C. The "Big Beautiful Bill" (BBB) from the Trump administration was passed by the U.S. House of Representatives by a very close vote of 218 to 214. The new law includes many changes to the economy and taxes, but one surprising part has the gaming community talking: it limits gambling loss deductions so that only 90% of wins can be claimed. This small change to the tax code could be terrible for poker players, especially professional players. What’s Changing and Why It Matters In the past, U.S. bettors could subtract all their losses from the money they won. Yes, that made sense. If you won $100,000 and lost $100,000, you broke even and didn't have to pay any taxes. But because of the new rule, you can only write off 90% of those losses. In this case, you would have to pay taxes on $10,000 in "phantom profit," which you didn't make. It's a nightmare for casual players who hit a big tournament score and pros who work hard to make a living by doing a lot of work for meager returns. Ray Kondler, a tax consultant, said: “It will negatively affect the recreational player… So basically, you’re paying income tax on phantom income you might not have ever made.” And for full-time pros, the hit is even worse. “They’re paying Social Security, Medicare, self-employment taxes… It’s a much bigger hit for professionals,” Kondler added. “This bill could have a major effect on the entire gambling industry.” Doug Polk’s Warning: “This Is an Attack on Poker” One of the strongest critics of the bill has been Doug Polk, a well-known poker player who has won three WSOP bracelets. Polk made a YouTube video that explains in great depth how the bill will affect the regular player and why it could set poker back decades. “Anyone winning under 10% a year becomes a losing player,” Polk warned. “That’s most regs.” People who play tournament poker buy in more than once because they want to win a few events and make money over the year. But today, even years when you break even might mean big tax payments. There is no way to change the figures since all tournament entries and payouts are recorded and published. Polk clarified that a player who wins $300,000 but loses $300,000 in buy-ins would still have to pay taxes on the $30,000 they never made. “This provision was slipped into the bill last minute,” Polk said. “And it could cripple the professional gambling world.” Tax Experts Weigh In It was also the view of Russell Fox, owner of Clayton Financial and Tax and a tax expert. Fox posted on X. That, or a "technical corrections" bill (quite common with tax law--technical corrections bills are generally bipartisan), could be used as a vehicle to rescind this law and revert back to current IRC 165(d). 6/n — Russell Fox (@russcfox) July 3, 2025 Fox doesn't think the damage will last forever, but he does see it as a major concern. He believes the problem might be resolved in a future bill for reconciliation or technical fixes, but the chances of it happening in 2025 are only 25%. Still, he remains hopeful. Dina Titus and Nevada Lawmakers Fight Back In an interview with News Nation, Nevada Congresswoman Dina Titus spoke out against the gambling clause and said she was working behind the scenes to eliminate it. Republicans hurt Las Vegas gamblers and the gaming industry with their BS budget. I am working on a bill now that would reverse this unfair anti-gaming tax provision. pic.twitter.com/kDoNuDC726 — Dina Titus (@repdinatitus) July 3, 2025 She stressed that changing the rule might be impossible with a single bill, but lawmakers are already discussing their options. The Poker Community Reacts The poker community are upset; you can see it all over forums and social media. Many players compared the situation to Black Friday, when the U.S. cracked down on online poker in 2011, forcing major sites to shut down. Zbeg posted: Comment byu/BIGMCLARGEHUGE__ from discussion inpoker Skittlebrew: Comment byu/BIGMCLARGEHUGE__ from discussion inpoker HeroofTime55: Comment byu/BIGMCLARGEHUGE__ from discussion inpoker outdoors703: Comment byu/BIGMCLARGEHUGE__ from discussion inpoker Aggressive_Bird_917: Comment byu/BIGMCLARGEHUGE__ from discussion inpoker Blind_Voyeur shared a spreadsheet on the effect of BBB on gambling wins/losses: Spreadsheet showing effect of BBB on gambling wins/losses byu/Blind_Voyeur inpoker What About the AGA? Surprisingly, the American Gaming Association (AGA) supported the broader tax bill, stating it would “support consumers, encourage business innovation and investment, and strengthen U.S. competitiveness.” However, the AGA also acknowledged concerns around gambling loss deductions and pledged to work with lawmakers on adjustments. Many in the poker world did not like this view. Chris Brewer, Rob Gardner, and Jeffrey Stellwagon are American pros who said the AGA wasn't doing enough to protect professional players. A Devastating Moment: But Not the End? For now, Ray Kondler doesn't think the plan is ""catastrophic".He hopes that unclear laws will be changed or clarified. On the other hand, Polk sees the vote as a pivotal moment for poker. “This bill could set poker back 20 years,” he warned. “It’s not about politics. It’s about survival.” It is a clear warning for everyone who loves the game, whether they play it full-time, in tournaments sometimes, or just for fun. The time to act is now. Players could be taxed entirely out of the game if nothing is done about this rule.
