As the crisp New Hampshire fall approaches, bringing with it football season and weekend casino trips, there’s a new tax rule on the horizon that might change how you think about your next bet. Starting in 2026, the One Big Beautiful Bill Act introduces what some are calling phantom taxes on gambling winnings, and it could mean paying taxes on money you never actually kept. Walk through what this means for your wallet, whether you’re hitting the slots or betting online.

Currently, the IRS allows you to balance gambling gains with losses on a one-to-one basis. For example, if you gain $50,000 at a casino but lose $60,000 during the year, current regulations let you report the gains, deduct all your losses, and pay taxes only on any net gain–in this instance, nothing, since you have an overall loss. It’s a simple system that works well for most players who keep track of their bets. But by 2026, this will change. You will only be able to deduct 90% of your losses, making you face taxes on phantom income, which is money you lost but can’t fully deduct.

For example, if you win $100,000 but lose $100,000, you’d deduct just $90,000 of those losses, meaning you’re taxed on $10,000 you didn’t actually keep. With the rise of alternative gambling platforms, some players are exploring options like crypto casinos to avoid heavy scrutiny. If you’re curious about these, a no KYC crypto casino guide can walk you through platforms that prioritize privacy, explaining security, bonuses, and risks like crypto volatility or lack of regulation.

This shift hits hardest for those who itemize their tax returns, like high rollers or professional gamblers. In order to claim your gambling losses, you need to itemize your return, which is a pretty large threshold to begin with. Occasional gamblers who visit casinos or bet on sports may not see a big change if they don’t itemize deductions. Yet, for those who gamble for a living, the change could affect how much they pay in taxes.

Say you’re a poker player who wins $200,000 in tournaments but loses $250,000. Right now, you could deduct the full $250,000 loss and report a net loss. But in 2026, you’ll only be able to deduct up to $225,000 (90% of your losses). This means you’ll be taxed on $25,000 of income that you didn’t actually receive. If you’re in the 37% federal tax bracket, you’ll pay over $9,000 in taxes, plus any state taxes, even though you’ve lost money overall.

It’s a tough pill for the gambling community, especially those who play big. There’s a silver lining, though–the bill raises the reporting threshold for slot machine winnings from $1,200 to $5,000, a number unchanged since 1977. This means fewer W-2G forms for smaller jackpots, saving paperwork and upfront withholding for modest wins.

Still, the broader impact has industry folks worried. Casinos and sportsbooks aren’t directly taxed more, but their high-stakes players might pull back. The fear from industry stakeholders is that the One Big Beautiful Bill will force poker players, sports bettors, and other professional gamblers to play with untaxed, unregulated alternatives, or to leave the industry entirely. In New Hampshire, where gambling options are limited but nearby casinos and online betting are popular, this could shift how people play.

To stay ahead, Morgan emphasizes tracking every bet meticulously. It will become more important to keep an up-to-date wins/losses sheet to make sure that you aren’t caught off guard come tax season due to these changes. Log dates, amounts, and locations–screenshots from betting apps or receipts work great. Many sportsbooks provide year-end summaries, but verify them yourself. If you’re a high-volume player, a tax pro can help strategize around the 90 percent cap, maybe by timing sessions or leveraging other deductions.

As 2026 looms, the government is tightening what they see as tax loopholes, but for gamblers, it feels like an extra hit on top of the house edge. Whether you’re at a charity poker night or going all-in on a basketball bracket, these phantom taxes are a reminder to play smart and keep records tighter than a Vegas vault.