Dana White Urges Trump to Restore Gambling Tax Break

Jonathan Rodriguez

Written by: Jonathan Rodriguez

Published: Fri May 15, 2026, 8:00 am ET

Read Time: 4 minutes

Dana White Urges Trump to Restore Gambling Tax Break

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UFC President Dana White has intensified pressure on President Donald Trump to restore full gambling loss deductions. His appeal targets a controversial tax change tied to the One Big Beautiful Bill Act (OBBBA).

The provision limits gamblers to deducting only 90% of losses against taxable winnings. Consequently, bettors may owe taxes even when they break even or lose overall.

Industry stakeholders tied to US online sportsbooks warn the rule could disrupt regulated markets. White has now framed the issue as both a tax fairness problem and a broader economic concern.

Dana White Urges Trump to Repeal Gambling Tax Deduction Cap

White sent a formal letter to Trump urging immediate reform of the deduction rule. He argued the policy creates irrational outcomes for gamblers and the broader gaming ecosystem.

"I believe Congress should fix this issue as the policy is already creating problems," White noted. "The current law makes it irrational to bet in the United States because you could end up owing taxes even when you lose or having a tax bill that exceeds your winnings for the year."

Importantly, White also raised concerns about downstream effects on service workers. He argued that taxed "phantom winnings" reduce disposable cash among gamblers.

As a result, he warned this could reduce tipping at casinos, arenas, and hospitality venues. That concern directly overlaps with President Trump's "No Tax on Tips" policy messaging.

White's argument suggests the gambling tax rule may unintentionally conflict with broader worker-focused tax priorities.

Furthermore, industry analysts note that reduced tipping could ripple through casino floors and live event staffing. This includes dealers, servers, and support staff who rely heavily on gratuities.

White also stressed that the policy could discourage engagement with legal betting platforms. Many operators tied to US online sportsbooks share that concern.

Dana White remains a Political Ally of President Trump

White maintains a long-standing political alliance with Trump. He has publicly supported Trump across multiple election cycles. White also appeared at the 2024 Republican National Convention. Because of that relationship, White's lobbying effort carries unusual political visibility.

Observers note that White often frames policy arguments in economic and fairness terms. That strategy allows him to reach both political and industry audiences.

Additionally, White has previously advocated for regulatory clarity in sports betting markets. This latest effort continues that approach.

What is the One Big Beautiful Bill Act?

The One Big Beautiful Bill Act includes several fiscal and tax provisions. However, its gambling deduction rule has drawn the most scrutiny.

The law caps gambling loss deductions at 90%, starting in the 2026 tax year. Critics argue this creates unfair tax exposure for active bettors.

Lawmakers have already introduced multiple repeal efforts. These include the FAIR BET Act, WAGER Act, and FULL HOUSE Act.

Representative Dina Titus of Nevada and Representative Ro Khanna of California introduced the FAIR BET Act. Representative Andy Barr of Kentucky introduced the WAGER Act.

In the Senate, Senators Ted Cruz of Texas, Catherine Cortez Masto of Nevada, Bill Hagerty of Tennessee, and Jacky Rosen of Nevada introduced the FULL HOUSE Act.

All three measures aim to restore full 100% deduction of gambling losses.

The Emerging "Session" Debate Adds New Uncertainty

Beyond the 90% deduction cap, tax professionals now focus on another major issue. The IRS definition of a gambling "session" could shape real tax outcomes.

If the 90% cap remains, the definition becomes critical. Regulators may define a session as per day, per casino visit, or per betting sequence.

Alternatively, a stricter interpretation could treat every wager as a separate session. That approach would significantly increase taxable gains on paper.

As a result, this technical detail could become a major legal battleground. Attorneys expect further guidance from the IRS as implementation nears.

For now, the gambling industry continues lobbying Congress and the White House. Stakeholders tied to US online sportsbooks are watching closely as policy uncertainty grows.

Jonathan Rodriguez
Jonathan Rodriguez

Jonathan is an avid basketball fan, and is often looking forward to the next upcoming NBA season when not checking players' stats during games. He also likes to keep his ears on the ground for the latest rumblings in the online casino industry.

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