UFC president Dana White penned a letter to President Donald Trump, asking him to implore Congress to reverse a provision within the One Big Beautiful Bill Act that places a 90% limit on gambling loss deductions.
"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," White wrote in the letter, which was dated May 11 and noted that he and Trump had discussed the topic in the past. "The UFC supports a healthy, legal sports betting market to drive fan engagement, broadcast value, and sponsorships. When legal betting is discouraged, it hurts the ecosystem we've spent years building in partnership with state regulators and licensed operators."
The UFC confirmed to ESPN the authenticity of the letter, which was first reported by gambling journalist Dustin Gouker.
When the bill was signed into law in July, many in the legal betting community raised the alarm about the potentially harmful effects of the new tax law, particularly in how it would affect high stakes and professional bettors. For example, a bettor who won $100,000 worth of wagers and lost $100,000 netted no money but would be allowed to deduct only $90,000 from their tax bill and would need to pay taxes on $10,000 of income.
Since then, industry advocates and lawmakers on both sides of the aisle have been working to reverse the provision. U.S. Rep. Dina Titus of Nevada's 1st District, which includes part of Las Vegas, introduced the Fair Accounting for Income Realized from Betting Earnings Taxation Act shortly after the passage of OBBBA, but it has not made its way through Congress for a proper vote.
"Restoring the 100 percent gambling loss deduction remains a top priority for the AGA, and we continue to actively engage with Congress and the administration to support a legislative solution," American Gaming Association senior vice president of government relations Chris Cylke said in a statement to ESPN. "We appreciate Dana White helping raise awareness about the negative impacts this issue has not only on bettors, but also on businesses and jobs connected to the legal gaming ecosystem."
ESPN's David Purdum contributed to this report.
