The Joe Pomp Show The New Law That Could Kill Legal Sports Betting in America
Jul 9, 2025
A new law has emerged that could derail professional gambling in the U.S., raising concerns for both sportsbooks and recreational bettors. The provision limiting gambling loss deductions may push gamblers towards unregulated markets. This shift threatens state revenues and could lead to job losses in the industry. Historical taxation comparisons reveal similar challenges the betting market has faced before. The implications of this legislation could undermine the safety net it intends to strengthen, leaving many questioning its long-term effects.
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Law Taxing Gambling Volume Not Income
- The new law caps gambling loss deductions at 90%, effectively taxing gamblers on activity volume, not income.
- This change risks shrinking the legal market, pushing professional bettors offshore and harming the industry ecosystem.
Sharps Are Market Backbone
- Sharps maintain market efficiency, fund prize pools, and ensure accurate betting lines.
- Removing sharps due to taxation will cause wider spreads, higher costs, and less attractive markets for all.
Bill Boosts Offshore Gambling
- Offshore markets benefit due to no IRS reporting and lower compliance costs.
- This bill ironically strengthens offshore gambling and might temporarily benefit domestic sportsbooks by reducing sharps.