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A group of poker professionals, tax experts, lobbyists and casual gamblers unanimously criticized a new gambling tax rule during a public hearing held by the Internal Revenue Service on Friday. The provision, part of last year’s Big Beautiful Bill (OBBBA), caps gambling loss deductions at 90% of winnings, effectively taxing players on 10% of their gross winnings even if they finish the year at a loss. The rule took effect in January.
Ten of the twelve scheduled speakers attended the hearing, which PokerNews monitored remotely, and all spoke out against the change, which critics have described as a “death sentence” for professional poker players.
Nevada Congresswoman Dina Titus, a longtime opponent of the tax change, told IRS officials that the consequences would be severe for both professional and recreational gamblers. She argued that taxing “phantom income” contradicts sound tax policy, since it charges players on money they never actually earned, and could push bettors toward offshore or unregulated platforms.
Other speakers echoed similar concerns. Poker journalist Sara O’Connor said the rule punishes transparency and high-volume play, while content creator Joshua Thatcher warned it could fuel illegal, off-grid betting activity. Poker pro Katie Stone recalled leaving the U.S. after the 2011 Black Friday crackdown, suggesting history could repeat itself.
Poker Fraud Alert founder Todd Witteles proposed delaying implementation of the tax to allow further study and possible legislative repeal. He also called for clearer definitions regarding business expense deductions for professional players, arguing that expenses like rake and buy-ins should not fall under the same 90% cap as gambling losses.
Additional speakers included representatives from the American Gaming Association, tax firm Kondler & Associates, and RunGood Poker Series winner James Cloutier.
