If gambling is part of your lifestyle or even your profession — Congress just changed the rules, and it’s not in your favor.

The recently passed One Big Beautiful Bill Act (OBBBA) introduces a new limitation beginning in 2026: gamblers will be allowed to deduct only 90% of their losses against their winnings. The remaining 10% vanishes permanently — you won’t be able to carry it forward to future years.

This last-minute provision could significantly increase tax bills for both casual and professional gamblers.

What Changes Under the OBBBA

Today, the rules work like this:

• Gamblers may deduct losses only up to their winnings.
  
• Casual gamblers can claim losses only if they itemize deductions. 

But starting in 2026, things get worse:

• You’ll still only deduct losses up to winnings.
  
• Now, you’ll also lose 10% of those deductions forever.
  

This effectively taxes players on “phantom income.”

Example:
You win $10,000 in 2026. You also lose $10,000.

• Before OBBBA: you’d break even with no taxable income.
  
• After OBBBA: you’ll deduct only $9,000 in losses, leaving you with $1,000 of taxable income even though you didn’t profit.
  

Current Pushback in Congress

Not surprisingly, gamblers are outraged. Lawmakers have already introduced three separate bills aimed at eliminating this 10% haircut.

Whether these efforts succeed remains uncertain. For now, the law stands, and it’s scheduled to take effect in 2026.

What You Should Do Now

Until Congress changes course, gamblers need to be prepared. That means better recordkeeping:

• Track your gambling by session, not by bet.
  
• At year’s end, add up all winning sessions separately from all losing sessions.
  
• Keep receipts, tickets, and other documentation.
  
• Don’t rely solely on casino-issued win/loss statements, they tend to inflate winnings and understate losses. 

By maintaining detailed and accurate records, you’ll be in the best position to defend your deductions and minimize the impact of this new rule.

The OBBBA’s gambling loss provision could hit both casual players and professionals with higher tax bills, even when they don’t actually profit.

At BASC Expertise, we help clients navigate these changing rules so they don’t get blindsided by new tax laws. If gambling is part of your financial picture, now is the time to get your recordkeeping in order.