The current enactment of President Trump’s one massive lovely invoice on January 1, 2026 introduces a serious change that rebuilds sports activities betting within the UFC and past. UFC insider Gianni “The Greek” has commentator James Lynch outlined the results in an open dialog, highlighting how skilled bettors and controlled sportsbooks adapt.
Donald Trump raises tax on sports activities betting
The most important tax modifications below one massive lovely invoice in Trump’s sports activities betting will come into impact on January 1, 2026. First, gamblers can solely deduct 90% of their wager loss on prizes (from 100% since 1934). This provision will increase tax legal responsibility for skilled bettors within the federal authorities and compliant states.
“Basically, they are saying you possibly can drive some bettors. The key phrase there’s to pay revenue tax, even in years when there’s a web loss in playing,” Gianni mentioned. Beneath the brand new legislation, gamblers can deduct solely 90% of their losses on prize cash from the total 100% deduction that has been in existence since 1934. These counting on UFC fightlines, parlays and prop bets face a “phantom revenue” that’s taxed at regular charges, even when your entire season ends in pink.
“This does not have an effect on everybody. They do not make a revenue from the beginning as a result of they know that 99.5% of sports activities bettors could have a lifetime revenue,” Gianni identified. Definitely, most leisure UFC followers betting on fight evening underdogs and championship matches not often make a revenue, so it modifications little. “What this has an influence is the half % that actually makes the game of their dwell betting, and the folks that affect them, particularly those that are pressured to do it by way of the books on display screen.
“Most of the profitable bettors do not use on-screen books,” defined Gianni. “They use off-screen bookmakers, i.e. unlawful bookies that do not report. The explanation they accomplish that is as a result of they do not need to tie up such cash with non-profit accounts. In consequence, skilled UFC bettors might more and more shift volumes to offshore or peer-to-peer platforms, weakening the deal with of the authorized market and increasing the unfold of sportsbooks.
With skilled bettors thought of “undesirable” danger by regulated operators, the sportsbook can successfully value card counters in accordance with a mannequin just like switching between 3-2 to 2-2-6-5 payouts and blackjack. “Sportbook would not need to cope with bettors that pose danger,” Gianni mentioned. “They do not need to cope with it anymore. They need not do it due to legalization and inflow of leisure bettors.” UFC-level sharp bettors with skinny margins will query whether or not regulated on-screen bets are definitely worth the ROI, which reduces.
Bettors and Syndicates have already revised their enterprise fashions. “They’re undoubtedly being reorganized,” Gianni informed Lynch. Some specialists might both exit the trade or redistribute capital to low-tax belongings. “These individuals are not gamblers. They use sports activities bets as a instrument of funding,” he mentioned. If different investments present comparable returns as a result of decrease tax resistance, full-time bettors might merely shift their bankroll elsewhere.
Sports activities gamblers are dealing with a brand new federal panorama after President Donald Trump’s one massive lovely invoice legislation turned legislation on July 4, 2025. The practically 900-page legislation contains two tax-related clauses ranging from January 1, 2026. Part 70433 will improve the IRS report threshold for Slot, Bingo, Keno and Horse Pool Jackpots from $1,200 to $2,000 and index inflation.
Congressional workers acknowledge that the 90% cap is a late insertion of Senate funds aimed toward assembly the inexplicable settlement scorekeeping guidelines. Few protesters for the $700 billion US authorized gaming sector. A bipartisan correction invoice has already been launched and mobilised by heavyweight on line casino lobbyists, which is able to take away the 2026 submitting season earlier than it’s believable. Till then, bettors and operators might want to adapt to a patchwork of upper phantom publicity, potential for doc aid in smaller slot jackpots, and state conformance guidelines.
