Gambling losses under the One Big Beautiful Bill Act (Part 2)

As discussed in Part 1: An unwelcome surprise, the "One Big Beautiful Bill" (“OB3”) enacted on July 4, 2025, included a provision limiting the deduction of gambling losses to 90 percent of such losses. As many undoubtedly have already seen, this has sent ripples across the gaming industry, generating enough attention that legislators are already proposing a change to the bill.  Here, we examine a topic that has been known to industry stakeholders, professional gamblers, and high-dollar/high-value players for many years and is again drawing significant attention from even the casual bettor in the aftermath of OB3, the concept of “Gambling Sessions” and how that may impact the calculation of gambling losses subject to the limitation.

Here, we examine a topic that has been known to industry stakeholders, professional gamblers, and high-dollar/high-value players for many years and is again drawing significant attention from even the casual bettor in the aftermath of OB3, the concept of “Gambling Sessions” and how that may impact the calculation of gambling losses subject to the limitation.