The 2025 Tax Act (One Big Beautiful Bill Act) reduces the percentage of gambling losses a taxpayer can deduct from 100% to 90%. That means that if a taxpayer breaks even on wins and losses throughout the year, they will be taxed on a portion of their winnings.

Keep in mind that this change does not affect 2025 tax year returns that taxpayers will file in early 2026. It only applies to gambling wins and losses occurring in and after 2026. Additionally, this deduction is still only available to taxpayers who itemize their deductions.

Have questions or concerns about how the One Big Beautiful Bill Act impacts gambling taxes? Want to make sure you get every dollar you’re owed when you file your 2025 tax year return? Book your appointment to talk taxes with a professional today.

Sharon Brucker, CPA Senior Tax Research Analyst Published on: August 06, 2025
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*This content is for general informational purposes only. It is not intended to be comprehensive and should not be construed as professional tax or financial advice for any specific individual tax situation. Taxpayers should always consult a qualified professional for individual guidance. This information constitutes a solicitation under the Treasury Department's Circular 230. Most offices are independently owned and operated.