Dana White urges Trump to reverse gambling loss deduction cap

UFC president Dana White sent a letter to President Donald Trump urging him to rescind a provision of last summer’s One Big Beautiful Bill that limits the deductible gambling losses taxpayers can claim to 90%. The cap took effect on Jan. 1.

White asked Congress to correct the rule and told the president the cap harms everyday bettors. The provision reduces the amount of betting losses taxpayers may offset against winnings and applies to all gamblers, not only professional bettors.

The change drew criticism from gambling industry participants, Nevada-area politicians and professional bettors. Representative Dina Titus and other critics had previously sought a legislative fix with limited success. White’s letter brings a prominent sports executive into the effort to change the rule.

In the letter, White wrote: “The current law makes it irrational to bet in the United States because you could end up owing taxes even when you lose or having a tax bill that exceeds your winnings for the year.” He asked lawmakers to act because the policy is already creating problems for people who place wagers.

Under the provision, taxpayers cannot deduct the full amount of their losses against gambling gains beyond the 90% cap. Tax advisers and industry groups warned the cap could create cases where bettors face tax bills despite reporting net losses or where taxes on gambling income exceed a bettor’s net winnings for the year.

Changing the rule would require Congress to amend the tax code or for tax authorities to issue formal guidance. There has been no public indication that lawmakers or tax officials plan to revisit the provision since it took effect.

The dispute comes after the Supreme Court decision on May 14, 2018, that struck down the federal ban on sports betting and allowed states to legalize wagering. The new federal cap applies as the regulated sports-betting market in the U.S. has expanded.

Lawmakers and tax officials have not issued a public response to White’s letter.