The US Gambling sector has a new champion. Founder and CEO of the UFC, Dana White, has written to US President Donald Trump urging the President to repeal the controversial gambling loss provision embedded in the One Big Beautiful Bill Act (OBBBA). This makes White the highest-profile Trump ally to publicly challenge the President on this policy.

Speaking on the iGaming Daily Podcast, SBC’s Fernando Noodt sat down with Senior Business Journalist at SBC Americas, Justin Byers, to discuss what White’s letter really means and what it could spell for the gambling sector in the United States.

What the OBBBA actually changed

Prior to the OBBBA, US gamblers could deduct 100% of their gambling losses against winnings for tax purposes, with Byers pointing out that “this means a gambler could end up owing more taxes than they actually won”. Byers continues, pointing out that its big spenders and professional gamblers who are hardest hit by this tax change.

 A joint committee projection estimates the provision will generate approximately $1bn in additional federal revenue over an eight-year period – roughly $140m per year. For operators, trade bodies and consumer advocates, that’s a modest fiscal gain relative to the collateral damage it may inflict on the regulated market.

Dana White’s Letter

White’s letter is notable, not just for who sent it, but for what it signals about the UFC’s relationship with the gambling sector. The UFC is headquartered in Las Vegas, and wagering on MMA events is a core commercial pillar of the sport. 

In his letter, White made specific mention of the importance of gambling revenues to the UFC’s bottom line, and warned the President that continued frustration among bettors could drive them towards unregulated alternatives.

When asked by Noodt if Trump is likely to listen to White on the matter, Byers said: “We’ve seen Trump in the past take the advice of some of his buddies. Now that Trump has someone close to him in his ear about the issue, this could turn into a real thing with some real momentum”.

Will Trump Act

The million dollar question…

The OBBBA was passed through Congress, meaning any reversal will require either new legislation or an executive avenue. The administration could look to issue executive guidelines, direct the Treasury or IRS on enforcement priorities or mobilise supportive legislators to introduce an amendment. 

None of these are quick fixes, and with many states already winding down legislative sessions, a clear timeline on when a repeal could emerge is obvious.

Regardless of what avenue the US Government does take, Byers posits, “if he [Trump] does decide to make a change, he’s gonna be aggressive in his approach”.