TLDR
- Dana White sent a letter to Trump asking him to roll back a new federal limit on gambling loss deductions
- The 2025 tax law now only allows gamblers to deduct 90% of losses instead of the previous 100%
- Some bettors who break even or lose money could still face a federal tax bill under the new rules
- White argues the cap hurts Nevada’s tourism economy and undermines the “No Tax on Tips” message
- The legal gambling industry warns the change pushes bettors toward unregulated offshore sportsbooks
UFC president Dana White has written directly to President Donald Trump asking him to reverse a tax change that limits how much gamblers can deduct in losses. The provision, part of the 2025 One Big Beautiful Bill Act, has become a growing concern across the legal gambling industry.
Under the old rules, gamblers in the United States could deduct 100 percent of their losses against their winnings. That meant a bettor who won and lost the same amount in a year owed no federal tax on gambling income.
The new law changed that. Now only 90 percent of losses can be deducted.
That 10 percent gap creates a real problem. A high-volume bettor who breaks even over the course of a year could still owe taxes on money they never actually kept. Professional sports bettors and poker players were among the first to raise concerns.
White framed the issue as something that goes well beyond individual gamblers. He pointed to the ripple effects on Nevada’s broader economy, where big gamblers often spend heavily on hotels, restaurants, entertainment, and tips for service workers.
White Ties the Issue to Trump’s Own Policy Goals
The UFC president made a political argument alongside the economic one. He connected the tax cap to Trump’s “No Tax on Tips” messaging, saying gamblers facing surprise tax bills are far less likely to tip casino staff generously.
That framing was clearly strategic. Nevada’s economy depends heavily on gambling and hospitality, and tipped workers make up a large share of the state’s workforce.
White has been one of Trump’s most visible supporters in the sports world for years. He has appeared at campaign rallies and spoken on his behalf during multiple election cycles.
His involvement raises the profile of what had been a relatively quiet lobbying effort within the gambling industry. The issue had been building behind the scenes since the bill passed in 2025.
Legal Sportsbooks Say the Change Helps Offshore Operators
The legal sports betting industry has its own concerns about the deduction cap. Operators spent years pushing to bring bettors out of offshore and illegal markets into regulated systems.
Those regulated systems track transactions, monitor for integrity issues, and generate tax revenue for states. Industry executives now worry the federal cap makes legal betting less attractive to experienced or high-frequency bettors.
White echoed that concern in his letter. He argued that regulated sports betting is now deeply tied to professional sports, driving fan engagement, sponsorship deals, and media value.
UFC, like many major leagues and promotions, has built partnerships with legal sportsbooks since the Supreme Court struck down the federal PASPA ban in 2018. White described legal betting as part of the infrastructure of modern sports entertainment.
Critics of the deduction cap say it accidentally helps offshore sportsbooks. Those operators do not issue IRS forms and do not create the same tax headaches for their customers.
The political dynamics around the issue are complicated. Some conservatives see the cap as a way to close a loophole and raise revenue. Opponents say it taxes income that does not actually exist.
Congressional pressure to revisit the provision has been growing, though no formal correction has advanced yet.
White’s letter presented the issue not as a narrow gambling complaint but as a problem for regulated commerce, tourism, sports leagues, and American businesses connected to the betting economy.
His core message was simple. If the government wants bettors using legal, transparent, taxable markets, the tax code should not punish them for doing so.
No formal response from the White House has been reported as of mid-May 2026.
