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Indiana Sen. Todd Young has objected to legislation that would reverse new gambling tax provisions. His objection has blocked a bill pushed by Nevada Sen. Catherine Cortez Masto.
Cortez Masto sought unanimous Senate approval for the rollback measure. Under Senate rules, any single senator can block unanimous consent requests.
President Trump signed the broader tax legislation last week. The bill spans more than 900 pages and contains numerous provisions beyond gambling taxes.
Professional poker player Phil Galfond commented on the changes through social media posts. He made these statements before the legislation passed Congress.
According to Cortez Masto’s statements to the Associated Press, many senators were unaware of the gambling provision. She indicated that lawmakers from both parties missed this detail during the legislative process.
The new provision reduces gambling loss deductions from 100% to 90% of winnings. The previous tax code allowed full deduction of gambling losses up to the total amount won.
Federal budget projections estimate the change will generate $1.1 billion in additional tax revenue over eight years. This revenue projection was part of the broader tax bill’s fiscal calculations.
The gambling provision was included in Trump’s comprehensive tax legislation. The bill addresses multiple tax code changes across various sectors.
Cortez Masto told the Associated Press that the gambling provision wasn’t prominently discussed. “My understanding is many Republicans, many Democrats did not even know it was part of that process,” she stated.
Starting with the 2026 tax year, taxpayers can deduct only 90% of gambling losses. This applies to losses up to the amount of gambling winnings reported for that year.
The change affects all forms of gambling covered under current tax law. This includes casino games, poker, sports betting, and lottery activities.
Professional gamblers currently rely on full loss deductions for tax planning. The new rules alter their tax calculations significantly.
The provision was embedded within the larger tax legislation rather than proposed as standalone gambling policy.
Young’s objection prevents quick passage of the rollback legislation. The bill would need to go through regular Senate procedures without unanimous consent.
Professional gambling industry representatives have expressed concerns about the tax changes. Some argue the provision could affect professional players’ viability.
Cortez Masto indicated she plans to continue efforts to address the provision. However, the timeline for any potential legislative action remains unclear.
The broader tax bill has already been signed into law, making any changes require new legislation rather than amendments to the original bill.
In May 2025, Indiana reported that its sports betting handle reached $433.2 million. It’s important to note that Indiana sports betting has been legal for nearly six years now.
