Dana White Asks Trump to Fix Gambling Tax Rule That Could Cost Bettors Money Even When They Lose

UFC President and CEO Dana White sent a letter to the White House on May 11, 2026, urging President Donald Trump to push Congress to reverse a controversial gambling tax provision baked into the One Big Beautiful Bill Act. The provision limits gamblers to deducting only 90% of their losses against winnings, down from 100% under prior law. The change, which took effect January 1, 2026, can leave bettors owing federal taxes on money they never actually won.

White, a longtime high-stakes gambler and Trump ally, framed the issue clearly: under the current rule, a bettor who wins $100,000 and loses $100,000 — netting zero — can only deduct $90,000 of those losses. That means owing taxes on $10,000 of income that does not exist. White described this as creating “phantom income” and argued the policy is already making it “irrational” to bet legally in the United States.

What White Argued in His Letter

Written on official UFC letterhead and addressed directly to Trump, the letter praised the OBBBA’s broader tax framework before zeroing in on the gambling deduction issue. White argued the cap undercuts Trump’s own No Tax on Tips policy, reasoning that bettors who win big tip big, but the current tax environment discourages big wagering altogether. He called on Congress to fix the issue and restore the full 100% deduction, framing it as common-sense business policy consistent with Trump’s pro-growth agenda.

The American Gaming Association has also made restoring the full deduction a top legislative priority this year. Rep. Dina Titus of Nevada and Rep. Guy Reschenthaler of Pennsylvania introduced the FAIR Bet Act to undo the change, but it has not advanced in Congress. The AGA called White’s intervention helpful in raising awareness of the issue.

What This Means for Sports Bettors

Until the provision is reversed, bettors who itemize their taxes need to account for the new limit when calculating their gambling-related tax exposure. The rule applies across all legal forms of gambling, including sportsbooks, DFS platforms, online casinos, and racetracks. Casual bettors who do not track wins and losses carefully face the greatest risk of a surprise tax bill at year’s end. For more on how to approach this situation, the IRS continues to publish guidance on gambling income and loss reporting. Bettors placing wagers through DraftKings, FanDuel, or other licensed sportsbooks should consult a tax professional about their specific situation under the new rules.