Dana White Pens Letter Urging Trump to Undo 90% Gambling-Loss Deduction Cap
Posted on: May 13, 2026, 11:35h.
Last updated on: May 13, 2026, 11:56h.
- UFC CEO Dana White formally petitioned President Trump to reverse the OBBBA’s 90% gambling loss cap
- His letter warns that “phantom income” taxes discourage legal wagering and undermine Trump’s No Tax on Tips policy
- White’s intervention marks the highest-profile industry push to restore the full 100% tax deduction for gamblers
UFC President and CEO Dana White sent a letter to President Donald J. Trump on May 11, 2026, urging him to reverse the new rule capping gambling loss deductions at 90%.
The rule is the most controversial provision of the sweeping One Big Beautiful Bill Act (OBBBA), which Trump signed into law in July 2025. Prior to the change, gamblers could deduct 100% of their losses against winnings (up to the amount of winnings).
The new rule — which took effect Jan. 1, 2026 — limits the deduction to 90% of losses. This potentially creates “phantom income” — meaning that bettors who break even or even lose money overall could still owe federal taxes on a portion of their gambling.
Bipartisan attempts to restore the full deduction — including the FAIR Bet Act, introduced by Rep. Dina Titus (D‑Nevada) and Rep. Guy Reschenthaler (R‑Pennsylvania) — have stalled.
Letter Rip
Written on official UFC letterhead and addressed to the White House, White’s letter began by thanking Trump for the OBBBA, saying that “it sent a clear messages that your administration is serious about keeping America’s economy strong.”
Then it argued that the 90% gambling-loss deduction cap discourages legal sports betting and hurts businesses that depend on a strong regulated market, including the UFC.
In his letter, White argued that the new policy is already creating “irrational” tax outcomes that undermine Trump’s No Tax on Tips policy because gamblers who win less, tip less.
White also tied the issue directly to the UFC’s business model, writing:
The change has knock‑on effects for businesses like mine. The UFC supports a healthy, legal sports betting market to drive fan engagement, broadcast value, and sponsorships. When legal betting is discouraged, it hurts the ecosystem we’ve spent years building.”
White closed by framing the fix as aligned with Trump’s pro-business stance:
Fixing this deduction issue would send a strong signal that the United States supports common sense regulation.”
How the Letter Surfaced
Dustin Gouker, a gambling and prediction markets newsletter writer, and Rob Linnehan, a regulatory writer and editor for Sportradar, were the first to post the document on their X accounts. It’s unclear whether White or the UFC distributed it or whether it was obtained independently, but its rapid circulation suggests it was shared with industry insiders soon after being sent.
White — a high-stakes gambler and longtime friend and supporter of Trump’s — is now the most prominent sports executive to publicly push for reversing the deduction cap. His letter adds momentum to ongoing lobbying by the American Gaming Association and Nevada stakeholders, who argue the 90% limit undermines the very market regulators and operators spent years building.
No White House response has been reported.
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