One Big Beautiful Bill (OB3) Gambling Losses

This new rule begins for tax year 2026

This is a huge change for professional gamblers.  You can no longer deduct a net loss from the business.  Also, you can only deduct 90% of all business expenses, including losses.

Gambling losses are limited to 90% of wagering gains.  For casual gamblers, you are encouraged to use session tracking in order to maximize your deduction.  This method has been upheld in tax court.