Gambling with your losses: IRS edition.
Gamblers, tax professionals, and industry advocates gathered for an open IRS hearing to discuss the fallout from the new 90 percent gambling loss deduction cap, part of the so-called Big Beautiful Bill.
The consensus was clear: the cap creates 'phantom income,’ taxing players on money they never actually pocketed.
“The gambling industry is looking to face a decline in numbers because of the fear set in for many gamblers because of the 90 percent rule.”
Congresswoman Dina Titus highlighted just how much the gaming sector contributes to the economy, while others noted last year’s banner revenues are threatened by the new tax policy. The industry, as reported by PokerNews, is worried legal gambling could take a hit—ironically, because of an IRS ruling supposedly designed to help.