President Donald Trump plans to remove tax on gambling winnings, signaling a possible major shift in U.S. tax policy as part of his broader tax-cut agenda. In recent remarks, Trump indicated openness to eliminating the federal tax on gambling profits, though no formal legislative proposal has yet been introduced. Yahoo Finance
🇺🇸 What Trump Has Said So Far
During a media interaction aboard Air Force One, Trump was asked whether he would consider ending the federal tax on gambling winnings. He responded that the idea was under consideration, saying he would “have to think about that,” and linking it to other tax reductions his administration has pursued.
This comes amid Trump’s broader tax-cutting efforts this year, including the One Big Beautiful Bill Act (OBBBA) — a major tax overhaul signed earlier in 2025 — which already eliminated federal taxes on some types of income like tips and overtime pay.
📊 How Gambling Taxes Work Today
Under current federal tax law:
- All gambling winnings — from lotteries to casino jackpots — must be reported as taxable income.
- Amounts over $600 typically trigger a W-2G tax form issued by casinos and other payers.
- Higher winnings can face withholding of 24% or more depending on the amount and taxpayer information.
If Trump’s proposal advanced, it could eliminate this tax, reducing tax obligations for millions of Americans who gamble regularly or occasionally.
💬 Support and Implications
✔️ Public and Gambler Reactions
Supporters of the potential change argue it would boost disposable income for casual players and simplify tax filings for frequent gamblers. It also taps into Trump’s base of voters seeking broad tax relief.
⚠️ Fiscal Concerns
Economists and policy analysts caution that removing the federal tax on gambling winnings could reduce government revenue — a significant consideration given ongoing debates about federal deficits. This change would require approval by Congress, where tax legislation must be drafted and passed
📈 Political Context
Nearly 60% of U.S. adults gambled in the past year, including casino play and sports betting, underscoring how widely any change could affect the population
🏛️ What’s Next? Legislative Hurdles
At this stage, Trump’s comments reflect intent and openness to the idea rather than a concrete plan. Any move to remove federal taxes on gambling earnings would require a new bill from lawmakers in the U.S. Congress, committee review, and approval by both chambers before reaching the president’s desk.
Political analysts note that while Trump’s remarks indicate a desire to continue cutting taxes, the feasibility and support for such a specific tax change remain uncertain.
🧠 Summary
- Trump plans to remove tax on gambling winnings as part of broader tax-cut proposals.
- His remarks were exploratory — no formal bill has been filed yet.
- The change would require Congressional approval and could impact federal revenues.
- Current tax law still mandates reporting and taxing all gambling income.
