On July 4, the One Big Beautiful Bill Act (OBBBA) was signed into law by President Trump. The bill contains tax and spending policies that affect many people across the US, including professional poker players.
Major poker players, like Daniel Negreanu, expressed their concern over social media that the new bill will negatively affect professional poker players and their ability to generate profits.
What is this new bill? And how does it affect Everygame Poker login rates? Find out everything about OBBBA right now.
Everything You Need to Know About the One Big Beautiful Bill Act
First and foremost, the OBBBA permanently extends the individual tax rates Trump signed into law in 2017, which were set to expire by the end of 2025. In addition to that, it also contains hundreds of provisions that affect different aspects of the American economy, addressing anything from tax credits for seniors to deductions for whaling boat captains.
The part of the bill that raises concerns in the gambling community reads as follows: "…for purposes of losses from wagering transactions, the amount allowed as a deduction for any taxable year… shall be equal to 90 percent of the amount of such losses during such taxable year, and shall be allowed only to the extent of the gains from such transactions during such taxable year."
Experts in the industry explain that capping gambling loss deductions at 90% of winning will affect both recreational and professional players. In the past, players could deduct 100% of their losses, but now they can only deduct 90%. That means that players who break even during the year effectively pay taxes on income that they haven't earned. Also, a player who won an X amount of cash by playing poker but lost a similar amount, resulting in a very small profit margin, might end up getting taxed on a larger amount than they actually earned.
Poker pros like Daniel Negreanu spoke about the issue, saying: "I’m going to do everything I can to help make sure this isn’t a reality or a problem. And when I say everything, I mean everything."
Phil Galfond also said: " For poker, many pros will no longer be able to make it. But the big winners will remain."
However, not everything is lost. Tax consultant Russell Fox addressed the issue, saying that there is still a 25% chance the new law will be reversed or changed, as the wording of the bill leaves room for interpretation. According to Fox, there are multiple legislative paths that could be taken to lessen the negative impact this bill can have on the gambling industry.
Interestingly enough, the American Gaming Association was supportive of the legislation, while still stating that there is a need to collaborate with lawmakers to address key concerns that arose after the bill was passed.
In a social media post, they said: "The passage of the One Big Beautiful Bill Act significantly enhances our industry's ability to sustain quality jobs and deliver economic benefits…"
Is the Future of Online and Live Poker in Danger?
The short answer to this question is: NO. Experts believe that not everything is doom and gloom, and as the law still hasn't come into effect, there is still time to revise it.
Many powerful and influential individuals in the poker industry are working hard to make sure that those who play poker – both professionally and recreationally – won't be hurt by the new bill. Hopefully, they will be successful in their endeavors, ensuring that poker players will be able to make a profit while playing the game they love.