WPN
By Rebbecca Scales | Women Poker News
As we head into the biggest time of the year — the WSOP Main Event, the Mecca of poker — the U.S. Senate, led by GOP lawmakers still loyal to Trump-era financial strategies, just slipped a dangerous amendment into the “Big Beautiful Bill.” If passed, it could destroy the financial stability of professional and recreational gamblers alike.
This proposal is a continuation of the same anti-worker, pro-corporate policies that defined the Trump administration: protect Wall Street, punish everyone else. Starting in 2026, gamblers will only be allowed to deduct 90% of their losses and expenses, and still only up to the amount they’ve won. That might sound technical, but here’s what it really means:
- If you win $100,000 and lose $100,000, you’ll owe taxes on $10,000 of phantom income.
- If you win $100,000 and lose $50,000, you’ll owe taxes on $55,000 — more than you actually profited.
- Even professional players who grind massive volume with razor-thin profit margins could see themselves taxed as if they made double what they earned.
This applies to everyone, not just poker players. That means:
- Sports bettors
- Daily fantasy players
- Slot players
- Poker pros
- Stakers
- Table game players
Meanwhile, Wall Street and crypto traders still get to write off 100% of their losses and even carry them forward. Their travel, tools, and business expenses? Still deductible. But if you’re a pro sports bettor using software and traveling to regulated markets, you’re now penalized for being good at your job.
The Real Impact
This rule won’t touch hedge funds. It won’t slow down billion-dollar exchanges or Wall Street-backed betting platforms. It will hit:
- Recreational gamblers with no business structure to cushion losses
- Tournament grinders living off volatile years
- Professional bettors operating on tight margins
- DFS players who don’t even know they’re now tax targets
- Creators monetizing sports picks, poker clips, and strategy content
According to one hypothetical breakdown, a poker player who earns $200,000 in actual profit from $3 million in wins and $2.8 million in losses could be taxed as if they made $480,000. That’s a 140% inflation of real income, and it makes continuing as a full-time professional gambler completely unsustainable.
And it doesn’t stop there. Online players who grind legally on U.S.-regulated sites already receive tax forms like W-2Gs and 1099s. They’re held to reporting standards just like any other profession. But under this bill, even players who follow the law and report accurately will be punished. If you win $50,000 in tournament prizes and spend $50,000 chasing them, the IRS could still say you owe taxes on $5,000 you never saw. The same goes for sports bettors who win and lose through platforms that issue tax documents — now you’re on the hook for money you didn’t keep.
The More You Win, The Worse It Gets
This rule is especially harmful to high-volume professionals. The more you play, the worse it punishes you — even if your profit margin stays the same or shrinks.
| Winnings | Losses | Actual Profit | Taxable (New Rule) | Extra Taxed Income |
|---|---|---|---|---|
| $100K | $100K | $0 | $10K | $10K |
| $100K | $50K | $50K | $55K | $5K |
| $3M | $2.8M | $200K | $480K | $280K |
| $5M | $4.95M | $50K | $505K | $455K |
Professional gamblers — including tournament pros, sports bettors, DFS sharps, and full-time content creators — often deal with huge swings and thin profit margins. This rule doesn’t just tax phantom income; it penalizes anyone who plays legally at scale. The higher your volume, the more likely you are to be taxed at more than double your actual income.
If this bill passes, many in the gambling ecosystem will face a devastating choice: reduce volume, stop playing professionally, or risk massive tax liability based on fictional profits. That will push out independent earners and small operators just as they’re gaining ground.
Staking in Jeopardy
This bill could also wreck the ecosystem of staking — the practice of backing players with buy-ins in exchange for a cut of their winnings. Here’s why:
If you’re staked and you win $100,000 but owe 50% to your backer, your real take-home is $50,000. But under the new rule, if you had $100,000 in expenses, you could still owe taxes on $10,000 of phantom income — income that you never saw. Meanwhile, stakers themselves may not be able to fully deduct their share of losses unless they operate as formal business entities. This hurts both the backers and the players. Even casual swap deals between players could become tax liabilities if not meticulously documented. That’s a chilling effect on a foundational part of the tournament world.
The New Barrier to Entry
For decades, gambling was stigmatized. Now that it’s legal and regulated, new players — especially from underrepresented communities — are finally starting to find space in the ecosystem. But this bill slams the door shut. If the tax code punishes anyone who doesn’t win big, it creates an impossible barrier to entry. You’ll need a bankroll, a tax advisor, and a tolerance for risk that most new players can’t afford. The only winners? Corporations that can absorb the costs, and the lawmakers protecting them.
The Fake Ethics of It All
Let’s talk about the fake ethics here. Poker is on the cusp of being recognized as a mind sport. According to the American Gaming Association, sports betting is now a $10 billion industry and growing. The same industry that leagues like the NFL, MLB, and even ESPN condemned until they got a piece of the pie. These institutions spent decades dismissing gambling as a threat to integrity. Now that they profit from it, suddenly it’s safe and reputable — for them, not for us. That hypocrisy is staggering.
And let’s be real: content creators are already under attack in this industry. If you’re independent, small-scale, or covering poker, betting, or fantasy sports in a way that doesn’t benefit a billion-dollar operator, you’re labeled unethical. But if you’re DraftKings or ESPN Bet, you’re legitimized. That’s not about integrity. That’s about power. The same influencers and creators who helped build visibility for poker and sports betting are now being squeezed out of monetization and legitimacy by the very corporations that once condemned us.
The irony couldn’t be sharper: the same party that preaches “less government” is now quietly pushing one of the harshest regulatory overreaches in the gambling space. Legal gambling generated over $66.5 billion in revenue in 2023 in the U.S. alone, not including the exploding market of creators, fantasy sports, and affiliate-driven ecosystems built around it. This isn’t about protecting the public. It’s about controlling the margins of an industry that’s finally becoming accessible to people outside the corporate elite.
Double Standards: Wall Street Wins, Players Lose
This tax amendment isn’t about financial responsibility — it’s about selective protection. Wall Street firms and crypto exchanges continue to enjoy full write-offs, favorable capital gains rates, and even government bailouts when things go wrong. They can deduct 100% of their losses and expenses, and carry excess losses forward for years under IRS Code §§ 1211–1212.
Meanwhile, legal gamblers, sports bettors, and independent content creators are being punished for volatility. There is no bailout for poker pros. No carry-forward for DFS players. No relief for the content creators who report every cent and still owe on income they never actually earned.
This bill doesn’t just preserve loopholes for high finance — it strengthens their competitive edge. While regulated gambling operators and creators get squeezed, crypto and investment firms continue benefiting from rules designed to protect volatility in their business. This isn’t a tax correction — it’s a shift in power.
This bill is a giveaway to billion-dollar platforms — and a direct hit to the backbone of the gambling economy.
Impact on Gambling Media and Small Businesses
This bill doesn’t just hurt players — it threatens the businesses and media platforms built around legal, regulated gambling. From independent content creators to affiliate-based communities, the chilling effect will ripple across every corner of the industry.
Whether you’re running a YouTube channel, Twitch stream, blog, TikTok, or poker coaching group, this bill hurts your audience, your reach, and your bottom line. The Senate doesn’t just risk taxing phantom income — it risks killing the very real growth that small creators and independent media have fought for over decades.
What You Can Do
This bill hasn’t passed yet — but it’s close. Here’s how we fight back:
- Call your House Rep and Senator to request that they strip the bill’s 90% gambling deduction cap. To find your representative, visit https://www.house.gov/representatives/find-your-representative or call the Capitol switchboard at (202) 224-3121.
- Tag gambling-friendly lawmakers like @RepDinaTitus and use hashtags like #ProtectPoker #TaxFairness #FixTheGamblingBill.
- Tell your story if this would hurt you. We need real people behind the outrage.
- Support industry orgs fighting this now — including poker pros, sportsbooks, and advocacy groups.
- Share this article across platforms to raise visibility. The silence around this bill is part of the danger.
Final Word
This isn’t tax reform — it’s a sin tax in disguise, treating professional gamblers and creators like vice offenders, while billion-dollar corporations skate by untouched.
If they want to treat us like professionals when it comes to regulations, then they need to treat us like professionals when it comes to taxes.
We are not going to be quiet while Wall Street gets bailouts and tax breaks, and the rest of us are told that our legally earned dollars don’t count unless we lose big.
Until then, we fight.
#ProtectPoker #TaxFairness #FixTheGamblingBill #IndependentCreators #GamblingRights
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