Dana White Takes the Fight to the Taxman: The Push to Save Your Gambling Deductions

UFC CEO Dana White is stepping out of the Octagon and into the legislative arena. In a bold move that has sent shockwaves through the gaming industry, White has formally petitioned President Donald Trump to reverse a controversial new tax rule that could cost American gamblers millions.

At the center of the dispute is a provision within the One Big Beautiful Bill Act (OBBBA), signed into law in July 2025. While the act was broad in scope, its impact on the gambling world has been immediate and painful.

The Death of the 100% Deduction

For decades, the math for tax-paying gamblers was straightforward: you could deduct 100% of your gambling losses against your winnings (up to the total amount won). This ensured that if you broke even over the year, you didn't owe the IRS a dime on those "wins."

However, as of January 1, 2026, the OBBBA has capped that deduction at 90%.

The "Phantom Income" Trap

This 10% gap creates what industry experts call "phantom income." Here's why it's a problem for the average bettor:

• The Math: If you win $10,000 but lose $10,000 over the course of a year, you have effectively made $0.
• The Tax Hit: Under the new 90% cap, you can only deduct $9,000 of those losses.
• The Result: The IRS now views you as having a taxable income of $1,000 — money you never actually took home.

Dana White's Direct Appeal

In a letter sent on official UFC letterhead on May 11, 2026, White urged his longtime friend, President Trump, to reconsider. White's key arguments include:

• Discouraging Legal Betting: High taxes on break-even play drive bettors away from regulated U.S. markets.
• Undermining "No Tax on Tips": When gamblers are hit with irrational tax bills, they tip less, directly contradicting the President's popular policy.
• UFC Ecosystem: The UFC relies on healthy sports betting to drive sponsorships and fan engagement.

"Fixing this deduction issue would send a strong signal that the United States supports common sense regulation." — Dana White

A Growing Movement

White isn't the only one sounding the alarm. Bipartisan efforts like the FAIR Bet Act, introduced by Rep. Dina Titus (D-NV) and Rep. Guy Reschenthaler (R-PA), have attempted to restore the full deduction but have hit roadblocks in Congress.

The HamptonINT Perspective

The 90% deduction cap is a real financial hit for serious bettors who operate at scale. It creates a tax liability on activity that produced no net profit — a fundamental departure from how income is supposed to be taxed. Whether Dana White's intervention moves the needle remains to be seen, but the issue is real and the industry is right to push back.

Entertainment first. Education always. Reality over illusion.