House Ways and Means Chair Jason Smith sharply criticized the tax hike in the “One Big Beautiful Bill.” He called the change a “bad decision” and warned of negative consequences. Smith focused on gambling-related tax changes that affect online sportsbooks and online casinos. He said lawmakers should reverse the hike to avoid hurting users of real money online casino platforms.
Smith spoke during hearings and interviews across multiple outlets. He urged colleagues to rescind the gambling tax hike, stressing the need to protect consumers who bet on online sportsbooks. Rep. Smith also pointed out that punters using online casinos now face unfair financial burdens due to the new federal policy. Smith argued this tax hike penalizes people using real money online casino services.
Gamblers can now deduct only 90 percent of their losses, down from the full 100 percent previously allowed. This shift, Smith noted, imposes unnecessary tax burdens on bettors. Describing the change as tone-deaf to current economic realities in gambling markets, he stressed that users of online sportsbooks and online casinos deserve fair tax treatment.
Smith urged his committee to act before year-end. He floated reversing the gambling tax alongside other bipartisan reforms. He urged lawmakers to move quickly on a vote, calling the provision deeply flawed. Reversing the tax hike, he said, would restore fairness to the gaming sector.
Framing the broader bill as a win for working families, Smith highlighted permanent middle-class tax cuts and expanded credits. However, he argued those gains risk being overshadowed by the gambling tax hike, which he warned directly undermines the bill’s core message of fairness.
Other Representatives Lobby Various Acts to Counter OBBB’s Tax Hike
Smith’s remarks came as Republicans push to win public opinion on their larger legislative package. He called the gambling tax hike a self-inflicted political liability. He said it contradicts the spirit of the bill.
Moreover, several lawmakers are now pushing targeted legislative fixes. The Fair Bet Act, the FULL HOUSE Act, and the WAGER Act are all gaining traction. These bills aim to restore full deduction rights for gambling losses and support fairness for real money online casino users.
Sponsors argue that the bills would protect recreational bettors and correct unintended harms of the tax hike. The measures also aim to support the growth of regulated online sportsbooks and online casinos by reducing tax friction.
Smith pledged to continue advocating for a rollback. He promised to challenge the tax hike in committee markup sessions. He promised to work with bipartisan lawmakers to amend the provision.