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An unwelcome surprise

Gambling losses under the One Big Beautiful Bill Act (Part 1)

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The taxation of gambling winnings and the deductibility of gambling losses have long been subjects of scrutiny and debate within the US tax code. Players, tax professionals, and policymakers alike have closely followed changes in these rules, as they significantly affect both the gaming industry and individual taxpayers. This document provides a detailed summary of the historical tax rules regarding gambling loss deductions, the changes introduced by the Tax Cuts and Jobs Act of 2017 (TCJA), and amendments included in the “One Big Beautiful Bill” (OBBB), which was enacted on July 4, 2025.

Discover the implications for professional gamblers, high-net-worth individuals, and the future of gaming in the US.

Stay tuned for Part 2.

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Understanding gambling taxation: Historical rules, recent changes, and future implications

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Robert Stoddard
Partner, Tax, KPMG US
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Robert Stoddard
Partner, Tax, KPMG US
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