Dana White writes to Trump over betting tax cap
Table of contents
- UFC president and CEO Dana White wrote to President Donald Trump on May 11 asking him to urge Congress to reverse a 90% cap on gambling loss deductions introduced under the One Big Beautiful Bill Act.
- White warned the provision makes it “irrational” to bet legally in the United States, risking a shift toward unregulated operators.
- The letter has already moved prediction market odds on repeal, with Kalshi traders raising the probability from 15% to 38%.
Dana White has written to President Donald Trump asking him to urge Congress to repeal a gambling tax provision that limits US bettors to deducting only 90% of their losses against winnings, warning it is already pushing customers toward unregulated operators and undermining the legal betting ecosystem.
Tax change explained
The 90% cap was included in Trump’s One Big Beautiful Bill Act, signed in July 2025, and took effect for the 2026 tax year from January 1, 2026. Previously, gamblers could deduct losses up to 100% of their winnings.
Under the new rule, only 90% of losses are deductible against winnings. The remaining 10% shortfall cannot be carried forward or offset against other income, meaning bettors can face a net tax liability even in break-even years.
For example, a bettor with $200,000 in winnings and $200,000 in losses finishes the year flat but faces a tax bill on $20,000 of income they never actually received.
The letter, dated May 11, was first reported by gambling journalist Dustin Gouker on X. ESPN subsequently confirmed and reported the details, with the UFC authenticating the letter’s contents.
Dana White, a high-stakes gambler and longtime Trump ally, said:
“The current law makes it irrational to bet in the United States because you could end up owing taxes even when you lose or having a tax bill that exceeds your winnings for the year.”
The rule applies across all forms of gambling, including casinos, sportsbooks, DFS, racetracks, lotteries, and online gaming, affecting casual and professional bettors alike.
Industry pushback
White’s letter is the most prominent direct appeal yet to the White House on the issue, adding weight to campaigns by the American Gaming Association and Nevada stakeholders against the 90% limit since it was signed into law.
The AGA stated to ESPN, following the letter’s publication, that restoring the full deduction is critical not only for bettors but for the businesses and jobs the legal gaming ecosystem supports.
Several legislative attempts have sought to reverse the provision. Rep. Dina Titus introduced the FAIR BET Act to restore 100% loss deductibility. Sen. Catherine Cortez Masto introduced the FULL HOUSE Act. Rep. Andy Barr filed HR 4630. None has advanced far enough to pass.
White also framed the issue in commercial terms, arguing the provision has knock-on consequences for the UFC’s sportsbook sponsorship business.
White warned it could push some bettors toward unregulated operators, saying:
“The UFC supports a healthy, legal sports betting market to drive fan engagement, broadcast value, and sponsorships. When legal betting is discouraged, it hurts the ecosystem we’ve spent years building in partnership with state regulators and licensed operators. It also undercuts the transparency and integrity protections that legal betting provides for professional sports.”
White told Trump that fixing the deduction issue would be “common-sense regulation” consistent with his pro-business stance, and noted the two had previously discussed the matter.
Markets react
White’s letter moved Kalshi’s prediction market on whether the cap will be repealed before the end of 2026. By May 13, the market had risen from around 15% to 38%.
A separate Kalshi market on repeal before September 1, 2026 moved from 22% to 29% following the letter’s publication.
Industry groups warn that if the deduction cap remains in place, migration toward unregulated platforms could erode handle volumes and tax revenues across licensed US markets.
With prior Congressional bills failing to advance, Trump’s direct intervention, should White’s appeal succeed, may represent the most viable route to a legislative fix.
Kalshi odds over betting tax cap
Photo credits: Jeff Bottari / Zuffa LLC
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