Dana White Letter Boosts Momentum Behind Gambling Tax Deduction Repeal Efforts

UFC President Dana White has publicly joined the push to reverse the federal gambling loss deduction cap introduced by the One Big Beautiful Bill Act (OBBBA), sending a letter directly to President Donald Trump urging a reversal of the new law.

The timing is notable. Reports recently emerged that the House Ways and Means Committee, where several proposals seeking to reverse the change currently sit, is preparing a hearing on sports-related tax issues in the coming months.

White Urges Trump to Reverse Gambling Tax Change

In a May 11 letter first reported by analyst Dustin Gouker, White wrote:

I write today to raise an issue we have discussed in the past: the need to reverse the 90 percent limit on gambling loss deductions for US taxpayers included in the OBBBA.”

White argued that the current framework could lead to situations in which bettors owe taxes even if they lose money overall. He 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.”

The UFC President also tied the issue directly to the regulated sports betting ecosystem, writing:

When legal betting is discouraged, it hurts the ecosystem we’ve spent years building in partnership with state regulators and licensed operators.”

New: UFC President Dana White has sent a letter to President Donald Trump asking him to help reverse the 90 percent limit on gambling loss deductions for US taxpayers that became law last year.

The issue has been a concern for both bettors and the gambling industry itself. pic.twitter.com/WH9ukZi3mH

— Dustin Gouker (@DustinGouker) May 13, 2026

White and Trump have maintained a close relationship for decades. The UFC president has frequently appeared alongside Trump publicly and supported him politically over the years.

The timing of the letter comes as the organization is hosting its upcoming UFC 250: Freedom event at the White House as part of the U.S.’s 250th anniversary celebrations, further underscoring White’s political proximity and influence.

Lawmakers and AGA Rally Behind White

The letter quickly drew support from lawmakers already involved in repeal efforts.

Rep. Dina Titus, who has been among the most vocal proponents of reversing the changes and is sponsoring related legislation, posted on X:

Thank you @danawhite for keeping up the pressure on @POTUS to restore the 100% tax deduction for gambling losses. I’ve led the fight here in Congress to get this fixed with bipartisan support. We cannot postpone this issue any longer.”

Senator Catherine Cortez Masto also referenced White’s intervention while promoting her own bipartisan legislation:

I agree with Dana White, the President needs to join us and fix this now.”

Cortez Masto said “the nonsense tax on gambling losses” is hurting players, the gaming and tourism industry, and the workers who depend on them for their livelihoods.

Meanwhile, Rep. Steven Horsford used the moment to promote his FULL HOUSE Act, posting:

My FULL HOUSE Act will solve this exact issue. Let’s get this over the finish line.”

The American Gaming Association (AGA) also publicly amplified White’s message. In a statement posted on X, the organization said:

Restoring the 100 percent gambling loss deduction remains a top priority for the AGA, and we continue to actively engage with Congress and the administration to support a legislative solution.”

The AGA added:

We appreciate Dana White helping raise awareness about the negative impacts this issue has not only on bettors, but also on businesses and jobs connected to the legal gaming ecosystem.”

Prediction Market Odds Surge Following Developments

Prediction market traders also appeared to react strongly to the growing political momentum.

On Kalshi and Polymarket, contracts asking whether the cap on gambling loss deductions would be repealed before 2027 surged sharply following reports on White’s letter and the broader political response.

On Kalshi, the market for repeal before 2027 jumped to 39%, up 24 percentage points. Meanwhile, the contract for repeal before September 1, 2026, rose to approximately 29%, up 16 points. Although prices later cooled slightly to around 30% and 22%, respectively, both remained significantly above levels seen before the letter surfaced.

Meanwhile, on Polymarket, the market for a repeal before 2027 briefly surged from 21% to 59%, before settling around 36%.

In addition to White’s letter, Punchbowl News reported that the House Ways and Means Committee is planning a hearing on several sports-related tax issues “per multiple sources.” The hearing is reportedly expected in late spring or early summer.

Notably, Titus’ FAIR BET Act, along with Horsford’s FULL HOUSE Act and Rep. Andy Barr’s WAGER Act, all of which aim to reverse the change, currently sit before the House Ways and Means Committee.

What Changed Under the OBBBA?

The controversy stems from changes included in the One Big Beautiful Bill Act, which altered how individuals can deduct gambling losses for federal tax purposes.

Previously, gamblers could deduct 100% of gambling losses against winnings. Under the new framework, deductions are capped at 90%.

For example, under the previous system, if a gambler reported $100,000 in winnings and $100,000 in losses during the same year, they owed no tax. Under the new framework, the gambler can only deduct $90,000 of those losses. That leaves the remaining $10,000 subject to income tax despite generating no overall profit.

Critics argue the change could create scenarios in which bettors owe taxes even if they finish the year at an overall loss. High-volume bettors and professional gamblers would be particularly affected.

Supporters of repeal have increasingly framed the issue not only as a bettor concern, but also as a broader concern for the regulated gaming industry that could push activity toward offshore or unregulated operators.