UFC President Dana White’s letter to Trump spiked odds of reversing a 90% gambling loss deduction cap to 37% before settling at 29%.
UFC President Dana White urged President Donald Trump to reverse a 90% cap on gambling loss deductions in the 2017 tax law. The provision limits deductions to $4,500 on $5,000 in winnings, leaving $500 taxable even if losses match gains.
Before the cap, taxpayers could fully offset gambling winnings with losses. The change was included to comply with procedural rules for the tax law’s passage. White argued the cap discourages legal betting, harming the regulated gambling ecosystem.
Prediction markets reacted to White’s letter, with repeal odds for this year jumping to 37% from 20% before retreating to 29%. Traders remain skeptical of near-term action.