By The Weekly Edge desk ·
Bonus.com reported that the IRS held a hearing on 17 July 2026 about the 90% gambling loss deduction rule for the 2026 tax year. Speakers sought repeal or clarification, warning that the limit could create taxable income without an overall gambling profit.
The deduction limit could leave gamblers with tax liabilities despite losses offsetting their winnings.
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Restoring the deduction would allow gamblers to offset all gambling losses against winnings when calculating federal tax.
Tax professors warn that uncertain taxation of prediction market gains could favour prediction platforms over traditional sportsbooks.
Authorities expect further indictments after seizing gambling machines and cash, leaving the alleged illegal gambling investigation open.
The advice directs gamblers towards state-licensed platforms amid competing federal and state regulatory frameworks.