Group Supported by Mike Pence Advocates for Ending Gambling Loss Tax Deductions

Mike Pence-Backed Group Pushes to Remove Gambling Loss Tax Deductions

A conservative organization led by former Vice President Mike Pence is pressing federal lawmakers to eliminate tax deductions related to gambling losses. This proposal could have a significant impact on American sports bettors and poker enthusiasts.

Details of the Advocacy Group’s Proposal

Pence’s group, Advancing American Freedom (AAF), recently released a policy memo targeting Capitol Hill. The memo opposes three bipartisan bills, including one introduced by Nevada Representative Dina Titus, which seek to restore the full 100% deduction on gambling losses.

Currently, under the One Big Beautiful Bill Act, the deduction for gambling losses has been reduced to 90%. Legislators like Titus argue that this reduction is overly severe and may push gamblers toward less-regulated markets. However, Pence’s group advocates for a stricter stance, recommending the complete removal of gambling loss deductions. If adopted, this would mean that gamblers would have to pay taxes on their entire winnings without any deductions for losses.

This development reflects ongoing political contention surrounding gambling regulations in the United States. Notably, Representative Titus has been active in related efforts, recently urging the Commodity Futures Trading Commission to investigate a Trump administration nominee amid concerns over connections to a large prediction market platform.

Current Tax Treatment of Gambling Losses

At present, gambling losses can be deducted from taxes, but only under specific IRS requirements. Taxpayers must itemize deductions on Schedule A of Form 1040 and keep meticulous records of their gambling activity, including both wins and losses. It is important to note that loss deductions cannot exceed reported gambling income and should be recorded as “Other Itemized Deductions.”

Regarding winnings, all gambling income is taxable at the federal level. Payers are obligated to provide Form W-2G to report certain gambling winnings. However, even if this form is not issued, all gambling earnings must be declared on the federal tax return, typically on Form 1040 or 1040-SR, with additional schedules as necessary. In some cases, taxpayers may also need to make estimated tax payments during the tax year based on their gambling income.

Please note, this article is intended for informational purposes only and should not be interpreted as financial or legal guidance.