In an online post on the social media platform known as X, professional gambler Phil Galfond warned how the proposed gambling tax change could have major ramifications on high-volume gamblers, with ripple effects on industries like horse racing. "Let's say that over the course of all the sessions we play throughout the year, we won $5.2 million and we lost $5 million for a net of $200,000," said Galfond in his post. "Now we would pay as if we won $5.2 million minus 90% of $5 million, which is $4.5 million, for a fake net of $700,000. So, you would make $200,000 during the year, [but] you would pay tax as if you made $700,000. Meaning, in almost everybody's case you would pay more tax than you made during the year," said Galfond.
That is "completely untenable," said Galfond. "You can't be a professional gambler in the U.S. if this goes through.