UFC President Dana White has called on President Donald Trump to advocate for Congress to overturn a provision in the One Big Beautiful Bill Act that restricts gambling loss deductions to 90%. This change has faced criticism from various sectors of the legal betting industry since the law was enacted.
In a letter dated May 11, which was verified by ESPN after being initially reported by gambling journalist Dustin Gouker, White emphasized the need for congressional action for any alterations to take effect.
White, who has a longstanding friendship with Trump and has previously discussed this issue with him, expressed that this provision could diminish the legal sports betting landscape in the United States, impacting both companies and employees linked to the regulated gambling sector.
He pointed out that the current law could render betting in the U.S. financially unfeasible for some taxpayers, warning that gamblers might incur taxes in years where they do not achieve a net profit.
“The existing law makes betting in the United States illogical,” White stated in his letter, noting that the UFC backs a legal sports betting environment as it enhances fan engagement, broadcast appeal, and sponsorship opportunities.
White cautioned that discouraging legal betting could harm an ecosystem that has been cultivated with state regulators and licensed operators over the years.
The One Big Beautiful Bill Act, which was enacted in 2025, significantly impacts federal taxes, credits, and deductions, according to the IRS. In his letter, White expressed gratitude to Trump for successfully pushing the bill through, stating, “It was a significant effort, and it sent a clear signal that your administration is committed to maintaining a robust economy in America.”
However, White pointed out that the gambling loss deduction limitation contradicts Trump’s “No Tax On Tips” initiative, as it could potentially decrease the amount gamblers tip service staff. He also warned that some bettors might opt not to gamble at all, while others could shift their activities to unregulated operators to avoid declaring winnings on their tax returns.
“The UFC champions a thriving, legal sports betting market that fosters fan engagement, broadcast value, and sponsorships,” White wrote in his letter shared on X.
“When legal betting is discouraged, it undermines an ecosystem we’ve dedicated years to building alongside state regulators and licensed operators. It also compromises the transparency and integrity protections that legal betting ensures for professional sports.”
This tax change has raised concerns among high-stakes and professional bettors, as it can generate taxable income even when a bettor breaks even. For example, a bettor with $100,000 in winnings and $100,000 in losses would have no net gain, yet under the 90% deduction cap, they could only deduct $90,000, leading to a taxable income of $10,000.
Advocates from the industry and lawmakers from both parties have been working to reverse this provision. U.S. Representative Dina Titus, whose Nevada 1st District encompasses part of Las Vegas, introduced the Fair Accounting for Income Realized from Betting Earnings Taxation Act shortly after the OBBBA was passed, but the proposal has yet to progress to a full congressional vote.
Chris Cylke, senior vice president of government relations at the American Gaming Association, stated that the organization remains committed to restoring the full gambling loss deduction and is in ongoing discussions with Congress and the administration.
“Restoring the 100% gambling loss deduction is a top priority for the AGA,” Cylke remarked in a statement to ESPN, adding that the association supports legislative solutions.
He noted that this issue affects not only bettors but also businesses and jobs associated with the legal gaming industry, and credited White for highlighting these important concerns.
Trump has been a supporter of the UFC, which is set to host an event at the White House on June 14 to celebrate Trump’s 80th birthday.