President Donald Trump did not rule out the possibility of eliminating taxes on gambling winnings, telling reporters on Tuesday that he will “think” about the idea. (Credit: swimming pool)
President Donald Trump said Tuesday he would consider eliminating federal taxes on gambling winnings, a move that would increase his administration’s push to cut taxes on daily income, including tips and overtime.
When asked during an Air Force One call whether he might eliminate the tax on gambling revenues, Trump said he would keep the option open.
“We don’t have a tax on tips, we don’t have a tax on Social Security and we don’t have a tax on overtime,” he said. ‘No tax on gambling winnings, I don’t know. I’ll have to think about that.’
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President Donald Trump told reporters on Tuesday that he will consider eliminating taxes on gambling winnings. (Minerva Studio/Getty Images/Getty Images)
The One Big Beautiful Bill Act (OBBBA), signed by Trump last summer, included “no tax on tips” and “no tax on overtime” provisions, allowing individuals to claim new rebates.
According to the American Gaming Association, nearly 60% of all American adults gambled in the past year, with 30% gambling in a land-based casino and 21% placing sports bets.
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President Trump said Tuesday he would “think about” lowering taxes on gambling revenue. (Alex Wong/Getty Images/Getty Images)
A W-2G form is typically issued to anyone who wins more than $600, and the normal withholding rate for gambling winnings of $5,000 or more is 24%, according to the Internal Revenue Service (IRS). The tax applies to lotteries, lotteries, horse racing and casinos, among others.
Up to 28% of the prize can be withheld for federal income tax if the individual wins more than $5,000, and that amount increases to 31% if a Social Security number is not provided to gambling establishments.
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A casino guest won more than $1 million on a “Wheel of Fortune” slot machine in Nevada on October 17, 2025, after turning a $3 bet into a life-changing jackpot. (David Becker/Getty Images/Getty Images)
All gambling winnings must be reported on a Form 1040, and while gambling losses can be deducted for the year, they cannot exceed the amount of gambling income.
