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Ted Cruz opposes proposed tax treatment of professional poker winnings in the US

Regulation

US Senator Ted Cruz has called for changes to a proposed tax rule in the Big Beautiful Bill, according to the report. The proposal would treat gambling winnings as gross income without accounting for losses or buy-ins; Cruz warned that professional players could owe tax even when their annual results are negative.

The proposed treatment could affect professional poker players’ tax liabilities and the economics of tournament play.

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Regulation

Pennsylvania casinos challenge gaming tax treatment of unlicensed machines

A group of Pennsylvania casino operators filed a petition with the state Supreme Court on 29 July, asking it to reassess tax rules for slot, skill and hybrid games. The petition argues that taxing licensed slot revenue at about 50% while unlicensed operators pay no tax violates the state constitution; it cites about $1.2bn in licensed-operator taxes in 2023 and estimates 67,000 unlicensed skill and hybrid machines in the state.

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