In 2025, Congress passed a major tax overhaul called the One Big Beautiful Bill Act (OBBBA). While many changes are subtle, some smaller provisions carry big consequences, especially for gamblers. Whether you play in casinos, at racetracks, or on apps and online platforms, these new rules apply to all forms of gambling. Failure to plan can result in unexpected and unfavorable tax liabilities.

Starting January 1, 2026, you won’t be able to deduct all of your gambling losses anymore, only 90% of them. So, what does that mean? Even if you break even at the casino or on an app, you could still end up owing tax. Under the new rule, a “zero profit” year can still create taxable income, so keep good records and plan ahead.

At first, this new rule might not sound like a big deal until the dollars get bigger. For example, if you win and lose $5,000 in a year, you’d normally walk away even. But under the 2026 rules, you can only deduct 90% of those losses. That means you’d still be taxed on $500 of income.

In short:

See the chart below for some examples: 

To avoid unexpected tax liabilities, consult your tax advisor early and confirm your record keeping and tax strategy are prepared for the new regulations.