UFC President Dana White has called on President Donald Trump to urge Congress to amend a provision in the One Big Beautiful Bill Act that restricts gambling loss deductions to 90%. This move has sparked backlash from segments of the legal betting industry since the law was enacted.
White’s request was outlined in a letter dated May 11, which the UFC confirmed to ESPN following its initial coverage by gambling journalist Dustin Gouker. For any amendments to take effect, Congressional action would be required.
Describing Trump as a longtime friend, White expressed that this limitation could negatively impact legal sports betting across the United States and potentially harm associated businesses and employees in the regulated gambling sector.
White warned that the current provision creates an unfriendly tax environment for bettors, noting that individuals might incur tax liabilities even in years when they have no net gain.
“The current law creates an irrational betting scenario in the United States,” White stated in the May 11 correspondence, adding that the UFC champions a legal sports betting market for its positive impacts on fan engagement, broadcast value, and sponsorship opportunities.
He cautioned that discouraging legal betting would disrupt a market nurtured in collaboration with state regulators and licensed operators.
The One Big Beautiful Bill Act, which became law in 2025, has significant implications for federal taxes, deductions, and credits, according to the IRS. In his letter, White expressed gratitude to Trump for enabling the passage of the bill, stating, “It was a significant challenge that demonstrated your administration’s commitment to maintaining a robust American economy.”
Nevertheless, White noted that the gambling loss deduction cap contradicts Trump’s “No Tax On Tips” policy by potentially reducing the amount gamblers choose to tip service workers. He also cautioned that some bettors might opt out of gambling altogether, while others may engage in betting with unlicensed operators to evade tax reporting on their winnings.
“The UFC advocates for a thriving, legal sports betting ecosystem that fuels fan engagement, enhances broadcast value, and fosters sponsorship opportunities,” White affirmed in his letter shared on X.
Concerns over the tax implication have been raised particularly by high-stakes and professional bettors, as it can lead to taxable income despite an overall break-even status. For example, if a bettor has $100,000 in winnings and $100,000 in losses, they would have no net gain, yet under the 90% deduction cap, they could only deduct $90,000 and would owe taxes on a $10,000 income.
Industry advocates and bipartisan lawmakers are actively pursuing efforts to repeal this provision. U.S. Representative Dina Titus, representing Nevada’s 1st District which encompasses part of Las Vegas, introduced the Fair Accounting for Income Realized from Betting Earnings Taxation Act shortly after the OBBBA’s passage; however, the measure has yet to progress to a full vote in Congress.
Chris Cylke, senior vice president of government relations for the American Gaming Association, stated that restoring the full gambling loss deduction remains a significant priority for the AGA as they continue discussions with Congress and the administration.
“We are committed to restoring the 100 percent gambling loss deduction,” Cylke remarked in a statement to ESPN, emphasizing the issue’s broader implications for businesses and jobs associated with the legal gaming industry, and commending White for highlighting these concerns.
Trump, a known supporter of the UFC, is set to host a UFC event at the White House on June 14 to celebrate his 80th birthday.