There’s a new provision in the Senate version of the so-called ‘Big Beautiful Bill’ that has received much attention and could have a real impact on gamblers, casinos, and the broader economy. The idea is to limit how much a person can deduct in gambling losses–capping it at 90% of their reported winnings. That might sound like a small technical tweak, but it changes the math in some pretty big ways.

Right now, if you win $100,000 and Lose $100,000, the IRS treats it as a wash-you report the full $100k in winnings and then deduct the $100k in losses if you itemize. Under this new Senate amendment, you’d still have to report all $100k in winnings, but you’d only be allowed to deduct $90k of your losses. That leftover $10,000? It becomes taxable income.

This change could discourage a lot of casual gamblers–especially tourists–who come to places Like Vegas or Atlantic City for a weekend of fun. If they know they can’t fully deduct their losses, they might gamble less–or not at all. That’s money that won’t be spent in casinos, restaurants, hotels, or shows. And that’s going to ripple through local economies that rely heavily on tourism and gaming.

It also hits professional gamblers harder. These folks already pay income tax and self-employment tax on their profits. If they can’t fully deduct their losses anymore, their taxable income goes up and so does their tax bill. That could mean fewer players entering tournaments or traveling for events, which would lower prize pools and hurt local economies that host big poker series or sportsbook events.