Gambling Tax Changes in “Big Beautiful Bill” Could Hit Bettors, Racing

[Wandering Eyes]

The version of President Trump's “Big Beautiful Bill” passed by the Senate earlier this week contains a tax provision that could see gamblers pay more in taxes than they win-a change that could have ramifications for horse racing's bottom line.

In the Senate's version of the bill, deductions for gambling winnings will be limited to 90% of annual losses. Currently, gamblers can deduct 100% of wagering losses (below a net profit) for any given year.

As NBC Sports describe it, “$100,000 in winnings against $100,000 in losses will be treated for tax purposes as if the losses were only $90,000.”

The specific language in the bill can be found at section 70114, “Extension and modification of limitation on wagering losses.”

“It is a big deal,” said Tom Rooney, CEO and president of the National Thoroughbred Racing Association (NTRA), who pointed to the possible impacts on horse racing revenues through gambling dollars throughout the sport, and especially those jurisdictions with no supplemental revenues.

Rooney said he's working with representatives from other key gaming entities to petition lawmakers on the issue, including the American Gaming Association.

“We've let it be known to our friends on the hill that our sport is generated by the people that play the horses. And, if they're dissuaded in any way to do that, it's going to hurt our sport,” said Rooney.

The House is currently voting to concur their version of the bill with the Senate. While no new language can be added, verbiage can be stripped.

A previous version of the bill in the House contained key tax provisions that would have been detrimental to many horse racing stakeholders. But Rooney said that they were able to remove that through lobbying efforts.

“Whether or not they can change language this late in the game is very tough,” said Rooney, about efforts to strip the latest gambling tax language from the current iteration of the bill.

“People ask, why are they moving this gambling tax from 100% to 90%, it's because of revenue, and just trying to find money wherever they can,” said Rooney.

Independent analysis of Trump's Big Beautiful Bill found it would increase the national debt by $3.3 trillion over the next ten years.

This story will be updated…

 

 

 

 

 

 

 

 

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