Archive · 10 Dec 2025
Trump Considers Ending Federal Taxes on Gambling Winnings
President Trump is thinking about removing the federal tax on money won from gambling.
Right now, if you win a lot of money gambling, the government takes a portion of it as tax.
Trump has already cut taxes on tips and overtime pay, and he's considering doing the same for gambling winnings.
About 60% of Americans gamble, so this change could affect a lot of people.
Currently, if you win more than $600, the casino or lottery will give you a form (W-2G) and take out 24% of your winnings for taxes.
If Trump makes this change, people might not have to pay taxes on their gambling winnings anymore, but the government would collect less money from gambling.
President Trump is considering eliminating federal taxes on gambling winnings as part of his broader tax-cut agenda.
Currently, gambling winnings of $5,000 or more are taxed at a rate of 24%, with winnings reported on Form 1040.
About 60% of American adults have gambled in the past year, with 30% visiting casinos and 21% placing sports bets.
Eliminating the tax could reduce reporting and withholding obligations for casual gamblers but would cut federal revenue from gambling.
Trump has already signed into law The One Big Beautiful Bill Act (OBBBA), which rolled back taxes on tips and overtime pay.
- Who
- US President Donald Trump
- What
- Potential elimination of federal taxes on gambling winnings
- When
- Currently under consideration
- Where
- United States
- Why
- Part of broader tax-cut agenda
- Current Tax Rate
- 24% for winnings of $5,000 or more
- Tax Forms
- W-2G for winnings over $600, reported on Form 1040
- Gambling Participation
- 60% of Americans gambled in the past year
- Casino Visits
- 30% visited a physical casino
- Sports Betting
- 21% placed sports bets