DraftKings CEO Expresses Concerns Over New Gambling Tax Provision
During a CNBC interview with Jim Cramer on Wednesday, DraftKings CEO Jason Robins expressed concerns over a recent tax provision related to gambling introduced in President Donald Trump's comprehensive bill. He described the change as a "very unusual modification." Robins explained, "It doesn't seem logical that if you can't fully deduct your losses, you're still required to pay income tax on non-income."
Changes to Deduction Rules for Gamblers
Previously, gamblers could subtract all their losses from winnings, resulting in taxation only on net gains. The new regulation limits this deduction to 90% of losses, meaning that if a gambler wins and loses the same amount, they can only deduct 90% of their losses, leading to taxes on a portion of their winnings.
Potential Technicality Behind the Adjustment
Robins suggested that this adjustment might have been a technicality aimed at complying with the Byrd rule, which prohibits non-relevant issues—typically unrelated to federal revenue or expenditure—from being included in budget reconciliation. He mentioned that there is some interest...