UFC president Dana White sent a letter to President Donald Trump asking him to urge Congress to reverse a provision in the One Big Beautiful Bill Act that limits gambling loss deductions to 90 percent, the letter dated May 11 says. The UFC confirmed the authenticity of the letter to ESPN, and the correspondence was first reported by gambling journalist Dustin Gouker.
White told the president the measure effectively discourages legal sports wagering by creating situations where bettors could owe taxes despite losing money or face a tax bill larger than their winnings, per the letter. He also emphasized that the UFC supports a regulated sports-betting market and warned that discouraging legal betting harms an ecosystem the organization says it has built alongside state regulators and licensed operators.
The report lays out an illustrative example to show the impact: a bettor who wins and loses equal amounts could end up taxed on a portion of those losses because of the 90 percent cap, according to the article. That example and others prompted concern across the legal betting community after the bill became law.
When the bill was signed into law in July, many in the legal-betting industry flagged potential harms, and industry advocates and lawmakers on both sides of the aisle have since worked to reverse the change, the report says. U.S. Rep. Dina Titus of Nevada’s 1st District introduced the Fair Accounting for Income Realized from Betting Earnings Taxation Act shortly after the OBBBA passed, but that measure has not advanced to a full congressional vote.
American Gaming Association senior vice president of government relations Chris Cylke told ESPN that restoring a full gambling-loss deduction is a top priority for the trade group and that the AGA continues to engage with lawmakers and the administration on a legislative fix. The report notes the AGA appreciated White’s effort to raise awareness about the provision’s broader effects on bettors and businesses. ESPN’s David Purdum contributed to the report.
