Gambling winnings are expected to be taxed more next year — at least federally. Thanks to the 2025 GOP/Trump tax and spending bill, a portion of winnings from activities like lotteries, slot machines, and sports betting face a potential double taxation.
That’s because prior IRS gambling rules allowed you to deduct all gambling losses up to the amount of winnings. Starting in 2026, losses are limited to 90% of winnings.
But just weeks before the new gambling tax provision becomes effective, President Donald Trump reportedly said he would “think about” repealing income taxes on gambling winnings entirely.
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