Dana White Urges Trump to Repeal 90% Gambling Loss Deduction Cap in the OBBBA

UFC President and CEO Dana White sent a letter to President Donald Trump on May 11, 2026, urging him to push Congress to reverse the 90% gambling loss deduction cap embedded in the One Big Beautiful Bill Act, which Trump signed into law in July 2025. White argued the provision is already discouraging legal betting in the United States and creating unfair tax outcomes for everyday gamblers.

Before the OBBBA took effect on January 1, 2026, bettors could deduct 100% of their gambling losses against winnings. The new rule limits that deduction to 90%, meaning gamblers who break even or even lose money overall can still owe federal taxes on the non-deductible portion. White described this as creating “phantom income” that punishes legal bettors and undermines the regulated betting market that the industry spent years building.

What the Letter Said

Written on official UFC letterhead and addressed directly to the White House, White’s letter opened by expressing support for the OBBBA’s broader goals before pivoting to the gambling deduction issue. “I believe Congress should fix this issue as the policy is already creating problems,” White wrote. “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 also argued the restriction undercuts Trump’s signature No Tax on Tips policy, reasoning that gamblers who win big tend to tip big, but are now less likely to gamble at all under the current framework. He framed the fix as consistent with Trump’s pro-business approach, writing that restoring the full 100% deduction would “send a strong signal that the United States supports common-sense regulation.”

Industry Push to Restore the Full Deduction

White is the most prominent sports executive to publicly call for reversing the deduction cap, but he is not alone. The American Gaming Association has made restoring the full deduction a top legislative priority. Rep. Dina Titus of Nevada and Rep. Guy Reschenthaler of Pennsylvania introduced the FAIR Bet Act earlier this year to roll back the change, but the bill has stalled in Congress. The AGA’s senior vice president of government relations, Chris Cylke, told ESPN that the organization “continues to actively engage with Congress and the administration to support a legislative solution.”

The OBBBA provision applies to all forms of legal gambling, including sportsbooks, casinos, DFS platforms, racetracks, and online gaming. For Nevada sports betting and other high-volume markets, the downstream effects could be significant if legal bettors shift activity or disengage. As of this writing, the White House has not issued a public response to White’s letter.