Gambling firm Cirsa's IPO scores success, Super Group disengages from US market, Germany pushes for swift amendments in gambling regulations
The gambling industry in the United States is currently embroiled in a heated debate over proposed taxation changes, as introduced by President Trump's "One Big Beautiful Bill."
Current Status
The bill, signed on July 4, 2025, includes a provision that starting January 1, 2026, gamblers will only be able to deduct 90% of their gambling losses against their winnings on federal taxes. This marks a change from the previous policy that allowed a full 100% deduction of losses, as long as they did not exceed winnings.
Arguments For the Changes
The new rule is expected to generate significant revenue for the government, projected at about $1.1 billion over ten years. The Trump administration views this change as a reasonable adjustment in response to increasing gambling activity and revenues.
Arguments Against the Changes
Critics argue that this change could severely affect both professional and casual gamblers. In some cases, individuals might pay more in taxes than their actual winnings, potentially derailing the business model of professional gamblers and harming recreational players financially. The deduction limit also creates a situation known as "phantom income," where gamblers are taxed on losses that are not fully deductible.
Major players in the gambling industry, through organizations like the American Gaming Association (AGA), are concerned about the impact on their operations and have called for adjustments to other tax thresholds, such as the slot machine tax reporting threshold.
Legislative and Industry Response
Nevada Congresswoman Dina Titus has introduced the FAIR BET Act, which aims to restore the full deduction for gambling losses and raise the slot machine tax reporting threshold. The House Ways and Means Committee has scheduled a hearing in Las Vegas to discuss the implications of these tax changes, indicating ongoing debate and scrutiny.
Meanwhile, Super Group, the parent company behind Betway and Spin gambling brands, is withdrawing from the US market, citing potential costs associated with the move. Macau is considering a complete shutdown of all gambling advertisements in the Special Administrative Region.
In Europe, Germany is aiming to overhaul some aspects of its gambling industry, with state ministers seeking to pass amendments to the 2021 Interstate Treaty on Gambling (GluΜStV). Offshore gambling operators in the Philippines may be dominating as much as 50% or more of the total market, according to PAGCOR boss Alejandro Tengco.
California's Attorney General, Rob Bonta, has expressed a desire to outlaw daily fantasy sports, calling them an illegal form of gambling. Bally's has cautioned that its support for Star Entertainment Group is not indefinite, and it may withdraw from the deal if Star faces a penalty similar to the one issued against Crown Resorts.
The Alcohol and Gaming Association of Ontario has greenlit the PointsBet acquisition by MIXI, but the deal's completion is uncertain due to a voided shareholder vote and Betr's opposition to the sale. The Social and Promotional Games Association (SPGA) argues that AB 831 creates a new form of crime and tries to destroy an entertainment segment that is legitimate and based on legal precedent.
In a positive note, Cirsa's public listing is hailed as a major success, making it the second-largest IPO ever hosted by a Spanish stock exchange. Blackstone's Cirsa's Initial Public Offering (IPO) has pushed the company's valuation to β¬2.5bn and brought in β¬400m in fresh capital. Andy Booth, Chief Product Officer at Games Global, and Armen Tatarevic, VP Gaming at White Hat Studios, discussed the importance of IP and branded slot games in reaching more players.
This article provides a summary of the current status and the arguments for and against the proposed taxation changes for gambling winnings and losses in the United States. The debate continues, and the outcomes could have significant implications for the gambling industry and individuals alike.
- The new taxation rule in the United States, introduced by President Trump's "One Big Beautiful Bill," has sparked a debate within the gambling industry, as it changes the deduction policy for gambling losses from 100% to 90%.
- Some argue that this change may negatively impact both professional and casual gamblers, potentially leading to scenarios where individuals pay more in taxes than their actual winnings, which could disrupt the business model of professional gamblers and financially harm recreational players.
- Organizations like the American Gaming Association (AGA) have raised concerns about the impact of these tax changes on their operations and have suggested adjustments to other tax thresholds, such as the slot machine tax reporting threshold.
- The FAIR BET Act, introduced by Nevada Congresswoman Dina Titus, aims to restore the full deduction for gambling losses, signifying ongoing legislative efforts to address these concerns within the gambling industry.
