UFC chief Dana White urges Trump to reverse gambling tax rule
UFC President Dana White has joined growing opposition to recent changes in US gambling tax laws, urging US President Donald Trump and Congress to reconsider new deduction limits introduced under the One Big Beautiful Bill Act (OBBBA).
For federal tax purposes, the legislation limits the amount gamblers can deduct from their losses from 100 per cent to 90 per cent of their earnings. Critics contend that the measure could result in what industry associations refer to as “phantom income” by requiring bettors to pay taxes even when they break even or record total losses.
Key shifts in OBBBA tax rule
An amendment to the gaming tax proposed under the OBBBA has come under heavy criticism. Gamblers will only be able to deduct 90 per cent of their losses from profits as of 1 January 2026, instead of the previous 100 per cent. Professional gamblers, poker players, and sports bettors who place large bets with small net gains are particularly affected by the law, which results in tax burdens that do not accurately reflect earnings.
Critics contend that by reducing the appeal of legal play and potentially driving bettors to offshore platforms that evade Internal Revenue Service (IRS) reporting, the policy weakens the regulated betting market. Critics also caution that the change could jeopardise the viability of the legal gaming sector, even though the Joint Committee on Taxation believes it could raise $1.1 billion over 10 years.
White’s letter to Trump
In his letter to President Trump, Dana White criticised the tax laws relating to sports betting, claiming that they are simply unjust, according to The Closing Line. His main argument was that legal gambling feels more like a financial penalty than a form of entertainment because consumers have to pay taxes even on wagers they lose. Additionally, White connected the issue to Trump’s own “No Tax on Tips” stance by pointing out that casino employees receive fewer tips and ultimately make less money when patrons place fewer bets. The letter gained significant traction at the same time Congress was beginning to hold hearings on tax issues relating to sports, which considerably accelerated the reform movement.
For the UFC, this is a personal matter more than merely a political one. White has made it clear that he thinks these tax restrictions seriously jeopardise fan interaction in legal markets. His worry is straightforward: if the rules make betting appear financially unreasonable, fans will either quit completely or covertly move to foreign websites that don’t abide by US standards.
Pushback against law
Congress has opposed the gaming tax statute and made several attempts to abolish it. The most well-known is the FAIR BET Act, which aims to restore full deductions for gambling losses and was put up by Nevada’s Dina Titus. The cap, according to lawmakers representing districts with a heavy concentration of gaming, puts local economies and employment associated with casinos and tourism at risk. The bill has struggled to advance despite bipartisan support; it gained more attention after Dana White brought up the matter in public.
Other bills aiming to remove the cap, such as Steven Horsford’s FULL HOUSE Act and Andy Barr’s WAGER Act, indicate broader concern among states that depend on gaming revenue. There is hope that the matter may finally gain momentum due to reports of potential hearings by the House Ways and Means Committee.
Political support for repeal
After Dana White’s letter, political support for repealing the gambling tax cap grew. Nevada’s Dina Titus thanked him for keeping pressure on Trump and highlighted existing bipartisan backing.
Senator Catherine Cortez Masto also voiced support, arguing the gambling loss tax changes hurt not only bettors but also workers and businesses connected to gaming tourism.
I have a bipartisan bill to reverse the nonsense tax on gambling losses for exactly this reason: it’s hurting players, our gaming and tourism industry, and the workers who count on them for their livelihoods.
— Senator Cortez Masto (@SenCortezMasto) May 13, 2026
I agree with Dana White, the President needs to join us and fix this… https://t.co/RrO11x7cMF
The American Gaming Association publicly praised White for raising awareness about the issue and reiterated that restoring the 100 per cent deduction remains a top priority.
The letter sent by UFC President Dana White underscores the AGA’s ongoing efforts to work with Congress to restore the 100% gambling loss deduction. Restoring the deduction is critical not only for bettors, but for the businesses and jobs supported by the legal gaming ecosystem. pic.twitter.com/W5TO9jcoel
— American Gaming Association (@AmericanGaming) May 13, 2026
What happens next
As the House Ways and Means Committee gets ready for hearings on tax matters pertaining to sports, the gambling tax debate is about to enter a crucial stage. Leaders in the field, specialists, and important stakeholders are probably going to testify. The issue is gaining momentum in Washington thanks to persistent lobbying, bipartisan support, and powerful voices like Dana White. A complete repeal is still regarded as doubtful, but the conclusion is still unclear.
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