Overview
- Answering reporters on Air Force One, the president said he would “have to think about” removing the federal levy on gambling payouts and did not offer a plan or timetable.
- Current IRS rules require gamblers to report winnings, issue a W-2G at $600, and withhold about 24% on payouts of $5,000 or more, with higher withholding if no Social Security number is provided.
- The One Big Beautiful Bill Act enacted earlier this year removed federal taxes on tips and overtime and will cap deductible gambling losses at 90% for tax years after 2025, creating so‑called phantom income for some filers.
- Lawmakers have introduced three House bills and a Senate companion by Nevada’s Catherine Cortez Masto to restore a 100% loss offset, though a unanimous‑consent attempt failed and the Senate Finance Committee is still reviewing the measure.
- Economists and policymakers are weighing revenue and deficit impacts, and the issue carries political weight in gambling‑reliant states such as Nevada and New Jersey.