In a surprising taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. code alteration that has frustrated Americans who enjoy gambling, a provision in the One Big Beautiful Bill Act (OBBBA) limits gambling losses that can be used to offset gambling winnings to 90 percent of their value. This provision, which previously allowed for 100 percent deductibility of losses against winnings, introduces a steep tax penalty for professional gamblers and certain casual bettors.
The OBBBA provision limiting the deduction of gambling losses might cause individuals to owe taxes on imaginary income,…