The U.S. Senate recently blocked Democratic senators' efforts to repeal the gambling loss tax relief adjustment in the "Great Beauty Act." According to the new law, starting in 2026, the deductible gambling loss tax will be reduced from the original 100% to 90%.
This tax reform has sparked strong backlash among professional gamblers and some Democratic lawmakers. Senators Catherine Cortez Masto and Nevada Representative Dina Titus led the initiative for the "Fair Betting Act," attempting to restore full deductions for gamblers' losses and reduce their tax burden.
However, the Republican majority obstructed the amendment, preventing the Democrats from successfully overturning this provision. Some Republican lawmakers claimed that many were unaware of the gambling tax adjustments during the bill's formulation and hoped that if the original deduction standards were restored, the Democrats should make concessions in other policies.
It is reported that the "Great Beauty Act" spans 900 pages and covers a wide range of tax and expenditure measures. Although the Democrats generally opposed it, some Republicans did not form a unified opposition, allowing the bill to pass.
Senator Ron Wyden pointed out that some Republican lawmakers still have doubts about this policy, and future tax reforms related to this issue may still provoke more controversy. This tax reform mainly affects high-stakes players, with winnings still 100% tax-exempt, and loss deductions reduced to 90%.
This law will officially take effect in 2026, and discussions on gambling taxes will continue in the future.
