UFC President Dana White has urged President Donald Trump to press Congress to reverse a provision in the One Big Beautiful Bill Act that limits gambling loss deductions to 90%, a change that has drawn opposition from parts of the legal betting industry since the law was enacted.
The request was made in a May 11 letter, whose authenticity was confirmed to ESPN by the UFC after it was first reported by gambling journalist Dustin Gouker. Congress would need to act for any change to take effect.
White, who described Trump as a longtime friend and has previously discussed the issue with him, argued that the provision could weaken legal sports betting activity in the United States and affect companies and workers connected to the regulated gambling market.
White argued that the provision makes betting in the United States commercially unreasonable for some taxpayers, warning that gamblers could face taxes even in years when they record no net gain.
“The current law makes it irrational to bet in the United States,” White wrote in the May 11 letter, adding that the UFC supports a legal sports betting market because it contributes to fan engagement, broadcast value, and sponsorships.
He said discouraging legal betting would harm an ecosystem developed with state regulators and licensed operators.
The One Big Beautiful Bill Act, signed into law in 2025, notably affects federal taxes, credits, and deductions, according to the IRS. White thanked Trump in the letter for getting the bill “across the finish line,” writing: “It was a heavy lift, and it sent a clear message that your administration is serious about keeping America’s economy strong.”
However, White said the gambling loss deduction limit undermines Trump’s “No Tax On Tips” policy by potentially reducing how much gamblers tip servers. He also warned that some bettors may choose not to gamble at all, while others could move activity to unlicensed operators to avoid reporting winnings on tax returns.
“The UFC supports a healthy, legal sports betting market to drive fan engagement, broadcast value, and sponsorships,” White wrote in the letter posted on X.
“When legal betting is discouraged, it hurts an ecosystem we’ve spent years building in partnership with the state regulators and licensed operators. It also undercuts the transparency and integrity protections that legal betting provides for professional sports.”
The tax change has been a concern for high-stakes and professional bettors because it can create taxable income even when a bettor breaks even overall. For instance, a bettor with $100,000 in winnings and $100,000 in losses would have no net gain, but under the 90% deduction limit would be allowed to deduct only $90,000 and would owe taxes on $10,000 of income.
Industry advocates and lawmakers from both parties have been seeking to reverse the provision. U.S. Rep. Dina Titus, whose Nevada 1st District includes part of Las Vegas, introduced the Fair Accounting for Income Realized from Betting Earnings Taxation Act shortly after the passage of the OBBBA, but the measure has not advanced to a full congressional vote.
American Gaming Association senior vice president of government relations Chris Cylke said the group remains focused on restoring the full gambling loss deduction and is continuing discussions with Congress and the administration.
“Restoring the 100 percent gambling loss deduction remains a top priority for the AGA,” Cylke said in a statement to ESPN, adding that the association supports a legislative fix.
He said the issue affects not only bettors, but also businesses and jobs tied to the legal gaming industry, and credited White with drawing attention to those concerns.
Trump has been a supporter of the UFC, which is scheduled to hold an event at the White House on June 14 in connection with Trump’s 80th birthday.
Original article: https://www.yogonet.com/international/news/2026/05/14/120503-ufc-chief-dana-white-asks-trump-to-intervene-in-gambling-tax-deduction-dispute
