Trump’s new tax law could cost gamblers even if they lose money
President Donald Trump’s new tax law reduces gambling loss deductions and could force some gamblers to pay taxes even if they lose their money.
For gamblers, the impact of President Donald Trump’s signature tax package is like a night at the table.
Hidden in the nearly 900 pages of mega tax and spending bill is a provision that causes the minimum victory slot machine victory that requires handpay and tax reporting at casinos.
One big beautiful bill law signed into law on July 4th, bringing the casino to a maximum victory before it issues a WG-2 form, shutting down the machine from a long-standing $1,200 figure to $2,000, and tied the threshold to inflation.
This section will be effective in 2026 and 2027.
Chris Silke, senior vice president of government relations at the American Gaming Association, praised the regulations in the gambling industry publication SBC America.
“Rating the reporting slot tax threshold to $2,000 and indexing inflation is a long-term modernization that reduces the burden of regulations and improves the customer experience,” Silke said.
In a 2022 press release, the association noted that a $1,200 threshold was created in 1977. The Bureau of Labor Statistics’ inflation calculator shows that the threshold would exceed $6,600 in June 2025 if it was linked to inflation.
Nevada Rep. Dina Titus, D., told Las Vegas CBS affiliate KLAS that the provisions have not progressed well.
“Running the slot report threshold to $2,000 is a step in the right direction, but that’s still not enough,” explained Titus, the slot method champion, which raises the threshold to $5,000. “The IRS Advisory Committee has recommended that this threshold be raised to more than $5,000 and indexed into inflation.”
Gamblers lose tax cuts with “big beautiful bill”
On the loser, the gambler will be hit courtesy of another tax provision in the newly created law.
Starting in 2026, gamblers can win $1,000. A reduction from the previous 100% deduction is only 90% of the loss.
The amount of losses a player can deduct is limited to prize money, and deductible losses cannot exceed the total prize money for that year.
Titus introduced the My Fair Bet Act on July 7 to recover the 100% deduction for gamblers.
“We should encourage players to use legal operators to properly report prizes and bets,” Titus previously told USA Today in a statement. “The Senate change will only encourage people to not report prize money and use unregulated platforms.”
