These moves underscore the rapidly evolving regulatory landscape. In May, the CFTC dropped its appeal of a federal judge’s ruling that allowed Kalshi to accept bets on US elections.

Meanwhile, during his June Senate confirmation hearing, Trump’s pick to lead the CFTC, Brian Quintenz, suggested that he wouldn’t stop the expansion of prediction markets. That includes sports event contracts.

DOJ and CFTC Drop Investigations into Polymarket

In a significant win for crypto-based prediction markets, Polymarket received notice from the DOJ and CFTC that they’ve dropped all inquiries into the company over potential violations involving US-based users.

The platform has been under scrutiny since its 2022 agreement with the CFTC, which prohibited it from accepting US customers. Polymarket made the assurances following the commission’s $1.4 million fine to Polymarket.

A few days after the 2024 presidential election, the FBI raided founder Shayne Coplan‘s residence in New York City. The agency seized his cellphone and other electronic devices. He was not arrested or charged.

Coplan blamed the Biden administration for the highly publicized raid, which sparked speculation in crypto circles and political media. Critics suggested the raid had political motivations, meant to punish the company, which predicted Trump would comfortably beat Harris.

Trump has not endorsed Polymarket. Still, he has referenced the platform’s polling-style predictions during his presidential campaign, highlighting his favorable odds.

The president also invited Coplan to his crypto summit in March. In that event, Trump said he’s ending the government’s war on crypto.

PredictIt Wins Key Regulatory Relief

In another major development, political prediction market PredictIt announced that it has entered into a revised agreement through a no-action letter with the CFTC, which will allow it to significantly expand its operations. The new terms include:

• Removal of the current 5,000-trader limit on contracts.
• The maximum individual position limit has increased to $3,500, up from $850.
• Expansion of markets.

Additionally, PredictIt’s governance will transition to a new non-profit entity, named the “Prediction Market Research Consortium.” Academic advisors from Princeton, Rutgers, and Wake Forest will guide the entity.

The change showcases PredictIt’s commitment to research. It also reinforces its role as a valuable tool for academia, the media, and the public.

The platform initially launched in 2014 as a research project by Victoria University of Wellington in New Zealand. As a research project, it was permitted to operate in the US under a no-action letter from the CFTC, subject to certain conditions.

In 2022, the CFTC withdrew the no-action letter and ordered PredictIt to shut down. However, the platform secured a temporary injunction by the Fifth Circuit Court of Appeals, which has allowed it to continue operating.

A Transforming Landscape for Prediction Markets

As Polymarket and Predict gain momentum, Kalshi, another prominent player in the sector, continues to face legal challenges.

Although the CFTC, which oversees prediction markets, withdrew its appeal against Kalshi regarding political markets, the platform is battling on several fronts regarding its sports event markets, which are the primary driver of Kalshi’s business.

Kalshi has won some legal battles. However, an ongoing case in Maryland could prove decisive for the future of sports event prediction markets. If Kalshi prevails, that could open the door for others such as PredictIt (and possibly Polymarket if it obtains US approval).

Additionally, if the courts determine that sports event contracts fall under federal jurisdiction, major sports betting operators like DraftKings and FanDuel, which are reportedly already preparing for potential entry, will likely move into the space.

The post US Prediction Markets Get Green Light: Polymarket Cleared, PredictIt Expands appeared first on CasinoBeats.

Rep. Titus of Nevada posted on X that she would be introducing the “the FAIR BET Act, the Fair Accounting for Income Realized from Betting Earnings Taxation Act, to permanently restore the 100% loss deduction from gambling winnings.”

On Monday I’m introducing the FAIR BET Act, the Fair Accounting for Income Realized from Betting Earnings Taxation Act, to permanently restore the 100% loss deduction from gambling winnings.

I welcome all other members to join this common sense fix.

— Dina Titus (@repdinatitus) July 5, 2025

The proposal aims to combat what many have highlighted as an unfair tax placed on gamblers by Trump’s One Big Beautiful Bill Act. The bill passed in both chambers in narrow votes last week and now only requires Trump’s signature to be enacted at the start of next year. 

New Tax On Gamblers Could Erase Profits

In an amendment in the Senate, the BBB now contains a clause that will no longer allow bettors to offset taxes on winnings with losses completely. 

Currently, gamblers can deduct 100% of losses from winnings and then pay taxes on the remaining profits. However, the amendment limits deductions to 90% of losses, meaning that gamblers who are only breaking even, or making a small profit, could pay more in taxes than they win, resulting in net losses. 

Professional poker player Phil Galfond spoke out against the tax, commenting that it will drive gamblers to offshore betting sites. 

Galfond gave the example that if a gambler won $5.2 million but lost $5 million, then the current rules would tax the $200,000 profit. However, the change means gamblers can only deduct 90% of their losses ($4.5 million), meaning they would pay tax on $ 0.7 million. 

At the current gambling tax rates, the winning gambler would pay $74,000 in taxes, leaving a net profit of $126,000. The change in the deduction rule would see the gambler paying $259,000 in taxes, leaving a net loss of $59,000. 

FAIR BET Act Gains Traction But Faces Opposition

The FAIR BET Act would restore 100% deductions and seems to be a popular policy. In a post on X following the amendment, Titus wrote, “I’m working on a legislative fix that fairly treats gaming losses in the tax code.”

The post received over 1 million views. Speaking to KNTV News, Titus said this was more than any other post she has made. Her latest post, confirming that she would be introducing the bill on Monday, July 7, has almost reached 1 million views at the time of writing. 

Most responses are in favor of reversing the rule change; however, not all comments are positive, with some objecting to any deductions for gambling. 

For example, one user commented, “Hold up. I can’t get my student loans forgiven, but some grandma in Jersey can write off her losing from her addiction?!”

Others called for earlier intervention to prevent the amendment from being included in Trump’s bill in the first place. 

Nevada Democrat Titus said she had tried to suggest an amendment to the bill, but House managers refused to accept any. Instead, she will introduce new legislation; however, whether Republicans, who control the House, will support the proposal remains to be seen.

It is estimated that the tax change could generate over $1 billion in federal revenue over eight years, but Titus believes this estimate is overstated. 

Gambling A Target For Tax Collectors

Lawmakers across the country have also been introducing additional taxes on gambling. 

Illinois’s controversial decision to tax both gross gaming revenue and every bet placed has been met with strong opposition from gambling companies. 

In response, FanDuel, DraftKings, and Fanatics have all stated that they will pass the cost on to users and introduce a betting surcharge. 

Elsewhere, Louisiana, New Jersey, and Maryland have also approved an increase in gambling taxes. The states’ rates rose from around 15% to around 20%.

The Sports Betting Alliance (SBA), comprising five of the country’s leading sportsbooks, has spoken out against the hikes, warning that bettors will turn to illegal gambling sites if regulators continue to target gambling as a source of tax revenue. 

It is estimated that the country collected over $15 billion in tax revenue from gambling last year, representing an 8.5% increase from 2023. 

The post FAIR BET Act Aims Reverse Gambling Tax Rule In Trump’s Big Beautiful Bill appeared first on CasinoBeats.

The small provision changes the tax deduction cap from 100% of gambling losses up to the winnings down to 90%. While a small change on the surface, the change could have significant implications for the gambling industry.

Once President Trump signs the bill, it will go into effect at the beginning of 2026.

What’s The Change?

Under current tax law, gamblers can deduct losses up to the amount of their winnings. Professional gamblers can also deduct related expenses, such as travel and lodging, as long as those and related losses don’t exceed winnings. For example, if an individual wins $100,000 in gambling but then loses the entire amount, they don’t owe anything.

However, the Senate’s amendments to the One Big Beautiful Bill Act will limit the deductions to 90% of the gambling losses incurred. As a result, gamblers could now owe taxes even if they don’t make a profit. Significantly, they can owe taxes even if they have substantial net losses.

For example, a gambler wins $100,000 but loses $100,000. Currently, they don’t owe anything, as they can deduct all of their losses, which equal the winnings.

With the upcoming changes, in the same scenario, the gambler can only deduct $90,000 (90% of the $100,000 in losses). That results in $10,000 in taxable income.

As income from gambling is taxed at about 24%, the gambler now owes approximately $2,400 in taxes, despite making no profit.

Nevada Congresswoman Plans Repeal Effort

The day after the Senate passed the bill, US Rep. Dina Titus from Nevada said that she was “working on a legislative fix that fairly treats gaming losses in the tax code.”

As the House passed the bill without changes, Titus told Las Vegas’ Channel 13 that she wanted to offer an amendment. However, House managers refused to accept any.

She added that she plans to bring a bill to repeal the provision next week. However, Titus, a Democrat, faces an uphill battle in a Republican-controlled House.

Titus has also stated that she believes the Joint Tax Committee’s estimates of $1.1 billion in federal revenue over eight years are overstated, with Republicans seeking additional funds from anywhere to mitigate the impact of the bill’s tax cuts.

In addition, she said the provision punishes honest people who do the right thing to report their winnings. The change would drive many to offshore gambling or to lie about their winnings to avoid additional taxation.

Industry Impact: Threat to Professional Gamblers and States

Professional gamblers who stand to lose the most, as well as industry experts, have been quick to criticize the deduction cap.

Professional poker player Phil Galfond said the change “would end professional gambling.” He later clarified that while this may be an overstatement, many professionals would no longer be viable. He warned that both professional and recreational gamblers might turn to offshore platforms to avoid new tax burdens.

Captain Jack Andrews, a professional sports bettor and industry educator, called it “an existential threat” to professional gambling in the US.

Tax expert and poker player Russell Fox echoed these concerns. He noted that many in the industry were unaware of the provision and will work to reverse it.

Beyond professionals, recreational gamblers could also face unexpected tax bills, discouraging legal gambling and reducing participation. Some individuals may opt for offshore platforms to avoid taxation.

While the scale is unknown, gambling establishments and online platforms would likely feel the ripple effect. That’s due to a decrease in wagering volume, especially among high-stakes and frequent bettors, who drive liquidity.

Moreover, state governments may ultimately lose tax revenue as players gamble less or shift to unregulated options.

The post House Passes Big Beautiful Bill Without Changes; Gambling Deduction Cap Set to Become Law appeared first on CasinoBeats.

Unlike the House version passed in May, the Senate’s bill proposes capping gambling loss deductions at 90% of the annual losses. That’s a sharp departure from the current law, which allows gamblers to deduct 100% of their losses up to the amount of their total winnings.

If enacted, this change could lead to scenarios where individuals owe thousands in taxes despite breaking even or ending the year at a net loss.

New Deduction Cap Explained

Under current tax law, gamblers can deduct losses (and related expenses for professional gamblers) up to the amount of their winnings. That prevents individuals from paying taxes on lost profits, as long as they provide proper records.

The Senate’s version of the One Big Beautiful Bill Act would limit the deductions to 90% of the gambling losses incurred.

That means, for example, if you win $100,000 but end up losing the entire amount. Currently, you would pay zero tax. However, under the new proposal, you can only deduct $90,000 (90% of your $100,000 in losses), leaving you with $10,000 in taxable income.

That means you owe approximately $2,400 in taxes, even though you did not make a profit.

The Proposal Could Lead To Substantial Losses for Gamblers and Operators

As professional poker player Phil Galfond explains on X, the Senate proposal will hit professional gamblers especially hard, as they typically operate with high volume.

Galford gives an example. If a professional gambler’s total wins for the year are $5.2 million and their total losses are $5 million, they currently pay tax on the $200,000 profit.

However, under the new proposal, they would pay tax on 10% of the $5 million in losses, plus on the $200,000 in net winnings. That amounts to $700,000. Instead of $200,000 in real taxable income, the professional would pay taxes on $700,000 in taxable income.

Galford insists that if this Senate provision passes, many gamblers will opt for offshore, illegal operators.

This would result in lost taxable revenue for the federal government and states. At the same time, those who opt to visit offshore sites won’t be protected by US consumer protection laws or responsible gaming tools.

Experts warn that this change could lead to substantial losses for the gambling industry. That’s because many recreational gamblers could stop gambling or reduce the amount they spend at regulated gambling establishments or online platforms.

The proposal also comes at a time when many states are raising taxes for gambling operators. For example, Illinois recently voted to tax sportsbooks for every bet placed on their platform. That has led to some, including FanDuel, DraftKings, and most recently Fanatics, to add a surcharge to customers.

Current Tax Structure for Gambling

Under US tax law, individuals are required to report all gambling winnings as taxable income. That includes winnings without a W-2G form.

Casinos and other gambling establishments issue W-2G forms for certain gambling winnings. That includes $1,200 or more from slots or bingo, $1,500 or more from keno, and $5,000 or more from poker tournaments.

The federal tax rate for gambling winnings is 24% on large wins. However, individuals must report even small wins that often result in no tax withholding.

Taxpayers can deduct gambling losses to offset the taxes owed. However, losses are deductible up to the total amount of winnings.

For example, you win $10,000 but lose $15,000. You can deduct up to $10,000 of your losses, bringing your taxable income to zero. The other $5,000 in losses are not deductible, and you cannot carry them over to the next tax year.

Also, out-of-pocket expenses, such as transportation, meals, and lodging, are not deductible unless you qualify as a gambling professional. While professional gamblers can add out-of-pocket expenses, these combined with losses cannot exceed total gambling winnings.

It’s also important to know that to claim gambling deductions, you must keep detailed records including:

• The date and type of gambling activity.
• The name and address, or location, of the gambling establishment.
• The names of other persons (if any) present with you at the gambling establishment.
• The amount won or lost.
• Supporting documentation (W-2G forms, betting tickets, receipts, statements, etc.)

Bill’s Status in Congress

The Senate passed the bill on July 1 with a 51-50 vote, with Vice President JD Vance providing the tie-breaking vote. Three Republican Senators, Maine’s Susan Collins, North Carolina’s Thom Tillis, and Kentucky’s Rand Paul, sided with the Democrats.

The bill now returns to the House for debate and a vote on the Senate’s amendments. That includes the provision for a 90% deduction cap on gambling losses.

It will likely be referred to a conference committee. Lawmakers from both chambers will negotiate the differences between the two versions before sending a final version back for approval.

However, time is running out. President Donald Trump has set a July 4 deadline to pass the bill. Therefore, if the Senate’s provision remains intact, the bill could significantly reshape the tax landscape for gamblers in the US.

The post US Senate’s “One Big Beautiful Bill Act” Could Force Gamblers to Pay Taxes Even When They Lose appeared first on CasinoBeats.

On June 11, the New York City Council voted again on whether to advance the company’s casino proposal to the state legislature. Previously, the Council opted not to bring the measure to the floor for a vote. At the time, some council members stated that Bally’s lacked the necessary support to proceed.

For the project to move forward in Albany for consideration, the Council must approve a “home rule” message that would enable the state legislature to rezone the parkland for commercial use.

Mayor Adams’ Support Tipped the Scale

In a last-minute vote, Mayor Adams issued a home-rule message in support of the Bally’s casino proposal. That message lowered the threshold needed for it to pass from a two-thirds supermajority (34 votes) to a simple majority (26 votes).

The Mayor does not sit on any Community Advisory Committees, such as the one that previously approved the Bally’s project. However, his role is influential as he can appoint board members, deliver a home-rule message, and influence the public narrative.

With Adams’ support, the City Council approved the proposal with a 32-12 vote, with seven abstentions. All Democrat Bronx councilmembers, except one who was absent, voted in favor of the Bally’s casino.

However, Councilwoman Kristy Marmarato, a Republican, whose district includes the potential casino site, voted against it.

She commented: “Voting in favor of this sets the precedent that we reward lobbyists and special interest groups when they go around the local representation in local communities. It absolutely will pave the way for a casino to be built.”

Benefiting Trump or a Fair Process?

Adams’ office says his support aims to ensure a fair and competitive casino selection process. A spokesperson for the Mayor said it does not matter which casino bids win one of the three coveted licenses. The important thing is for New York City to secure at least one of them.

Critics, however, argue the vote directly benefits Trump.

Bally’s purchased the golf course at Ferry Point, where the casino would be, from the Trump Organization in 2023. As part of the deal, Bally’s will pay the Trump Organization $115 million if it wins a license.

Adams’s show of support for the project has sparked speculation about whether the move was intended to benefit Trump, given their recent history.

Earlier this year, the Department of Justice dropped the criminal charges brought against Adams by the Biden administration. Those charges included wire fraud and bribery.

The Mayor has met with the president on a few occasions since the 2022 elections. Adams has repeatedly declined to criticize or speak negatively about Trump.

Adams’ spokesperson, however, denies that the Mayor’s support of the Bally’s casino project has any connection to Trump.

City Council Also Reviewed Coney Island Casino Proposal

While Bally’s bid moves forward, the City Council reviewed another casino application. On June 12, the Council’s Land Use & Zoning Subcommittee held a hearing regarding “The Coney”, a casino proposal in Coney Island.

The project is looking to “de-map” parts of Bowery Street (essentially close a portion of it). It also aims to acquire air rights to construct pedestrian bridges between buildings.

Both supporters and opponents testified in the meeting. Supporters highlighted the creation of 4,000 permanent jobs and 4,500 construction jobs. Additionally, the project will generate $200 million in community trust for local area improvements.

Opponents, including the Central Amusement (Luna Park) and the Coney Island History Project, warned that the casino would damage the historic amusement district.

The subcommittee did not vote on the project. It will continue to deliberate, and if it approves the zoning changes, the Coney will need Council approval before moving to the state.

The post NYC Mayor’s Support Helps Bally’s Casino Project Clear City Council Vote appeared first on CasinoBeats.

As reported on Inside Asian Gaming, the Macau-based game supplier announced last week that it has suspended the sale of gaming equipment in the US due to the tariffs imposed by President Donald Trump.

A subsidiary of Paradise Entertainment Limited, LT Game specializes in producing live dealer betting terminals, electronic table games, and slot machines.

Trump has hiked tariffs on select Chinese goods to 145%—the highest trade penalty the US has imposed in nearly 100 years—to which Beijing retaliated with levies of 125% on some US imports.  

As such, LT Game plans to shift its focus to Asia and Europe. However, the company’s chairman and Managing Director, Jay Chun, hopes to revisit the North American market in the future.

“We won’t be selling to the US in the short term,” Chun said Tuesday during an inauguration ceremony for LT Game’s new production line. “We’ve held off for the time being because the tariff on a gaming machine is more than 100%, and it’s hard to compete with products made in the US.”

He added: “I believe the trade issue can be resolved definitively, probably within a few months, and then we can consider reselling to the North American market.”

LT Game Sets Sights on Asia, Europe

Chun said US markets account for a “relatively small proportion of sales,” because of heightened tariffs, LT Game can no longer viably compete with domestically produced machines.

LT Game is particularly focused on the Philippines because of a strong demand for production, while Sri Lanka, Vietnam, and Cambodia continue to display growth.

While LT Game is known primarily for its live multi-game systems (LGM) in Macau, it has made a concerted effort to boost its slot offerings. This includes introducing new titles such as “Street Steel” and “Paw Link,” which features a linked jackpot.

The company also formed a partnership with Australia-based iGaming provider Massive Gaming.

“The Asian market for (casino gaming equipment) is very big now,” Chun said. “The Philippines is now the biggest market. They have a total of close to 30,000 slot machines.”

New Production Line Ready

According to Chun, LT Game’s new Macau-based production line can assemble more than 20,000 slot machines annually. The 20,000-foot facility took over two years to complete and allows the company to test and upgrade new hardware as it looks to keep pace in a hyper-competitive industry. 

Is Trump’s Trade War Hurting the Gaming Industry?

Although President Trump’s second term promised domestic deregulation, his aggressive international policy could harm several aspects of the US gaming industry.

Last month, Harry Reid International Airport (LAS) in Las Vegas reported a 7.5% drop in passenger volume, the most significant monthly decline since the pandemic. Given the tumultuous state of the global economy, the longer-lasting impact of Trump’s policy is yet to be seen. 

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