New Gambling Tax Rules Could Leave Bettors Owing Even When They Lose!

Football season has kicked off. This means that betting on college and NFL games is ramping up. Federal tax law requires taxpayers to report winnings on their tax returns, even if they don’t receive a Form W-2G for gambling winnings. Additionally, be aware that the One Big Beautiful Bill Act (OBBBA) will implement a major gambling rule change in 2026. Currently, gamblers are allowed to deduct 100% of their losses, up to the amount of their winnings. Beginning in 2026, gamblers can deduct from their winnings only 90% of their losses for a tax year. This means some gamblers could owe tax even if they break even or incur a net loss. Some lawmakers are seeking to roll back the new provision.