After lawmakers failed to repeal a controversial provision related to gambling tax deductions in the One Big Beautiful Bill Act (OBBBA) last year, UFC President Dana White is asking President Donald Trump to remove it.
As first reported by The Closing Line, White sent a letter to Trump requesting he reverse the OBBBA’s 90% limit on gambling loss deductions for taxpayers in the U.S. White is asking the president to remove the rule, as it has the potential to impact the bottom line of pro gamblers across the country.
The rule makes it possible for gamblers to be taxed on more than their net winnings.
“I believe Congress should fix this issue as the policy is already creating problems,” White wrote in the letter to Trump. “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.”
Before Trump signed the bill into law in July 2025, U.S. bettors were allowed to deduct 100% of losses from gambling if those did not surpass their winnings for a given tax year. White wants to revert to the previous tax plan concerning gambling deductions.
Americans have been subject to the 90% limit imposed by the OBBBA since Jan. 1.
Why does UFC want tax law changed?
A longstanding Trump supporter, White points to the UFC’s relationship with licensed sports betting operators and brands regarding the impact the OBBBA’s gambling deduction provision can have on its business as a sports organization. The tax provision could push gamblers toward the illegal market, White said.
“When legal betting is discouraged, it hurts the ecosystem we’ve spent years building in partnership with state regulators and licensed operators,” continued White. “It undercuts the transparency and integrity protections that legal betting provides for professional sports.”
The UFC president also notes another provision Trump included in the OBBBA that can impact casinos. The act allows casino workers to deduct taxes for tips received through “tangible or intangible tokens.” The tangible or intangible tokens include casino chips.
“Furthermore, this has the impact of setting back your signature policy No Tax on Tips, which greatly benefits Nevadans because gamblers who win big, tip big, but now that this 90 percent limitation exists, gamblers are likely to be less generous if they even gamble at all,” added White.
Under the OBBBA, casino workers can implement the rule when filing their taxes. The policy allows employees to deduct up to $25,000 in tips from their taxable income in a given year. In addition to chips, it also applies to cash, checks, and debit cards.
Failed legislative efforts to restore deduction rule
Last year, Nevada Rep. Dina Titus initiated a legislative effort to restore the 100% deduction rule after Trump signed the OBBBA. The measure, the Fair Accounting for Income Realized from Betting Earnings Taxation Act (FAIR BET Act), garnered bipartisan support.
Despite the support, the bill failed to gain traction in the legislative process, even after Titus attempted to add the measure to the 2026 National Defense Authorization Act.
Kentucky Rep. Andy Barr also made a legislative effort to restore the 100% deduction. His bill also stalled after being referred to the House Committee on Ways and Means.
