Welcome to Episode 1 of the Talk to Tom Podcast, where host Tom Viola is joined by Captain Jack to break down the biggest issue facing sports bettors in 2026 — the new 90% gambling loss deduction tax rule.
In this episode, Tom and Jack explain how recent tax law changes impact sports betting, professional gamblers, advantage players, and high-volume bettors, including why many bettors could now owe taxes on “phantom income.” They dive into current congressional efforts like the Fair Bet Act and FULL HOUSE Act, IRS guidance uncertainty, sessioning strategies, and what bettors should realistically prepare for this tax season.
They also discuss the latest college sports betting scandal, casino industry reactions, CPA disagreements on compliance strategies, and how this rule could reshape the future of legal sports gambling.
Topics Covered:
Sports betting tax law changes explained
90% gambling loss deduction rule
Fair Bet Act & FULL HOUSE Act updates
IRS guidance issues
Sessioning strategies for gamblers
Sports betting scandal news
How casinos and VIP bettors are impacted
Follow Thomas Viola on X at @TVatWork
00:00 – Welcome to Talk to Tom Podcast (Episode 1 Introduction)
01:20 – Why Captain Jack Is the First Guest
02:45 – New Gambling Tax Law Explained (90% Loss Deduction Rule)
04:30 – Why This Hurts Sports Bettors & Advantage Players
06:10 – Congressional Fix Attempts Overview
06:50 – Fair Bet Act Breakdown (Dina Titus Proposal)
08:00 – Why Tax Revenue Replacement Is Complicating Reform
09:40 – Laffer Curve & Gambling Tax Economics Explained
11:05 – Republican Support & Political Momentum
12:15 – FULL HOUSE Act Overview
13:50 – Timeline Pressure Before Midterm Elections
15:00 – Prediction Markets & Betting on Legislative Outcomes
16:00 – Filing Extensions & Tax Payment Risks
17:15 – CPA Disagreements on Gambling Tax Strategy
18:30 – IRS Lack of Guidance Problem
20:05 – Audits, Enforcement Timelines & Risk Reality
21:00 – Sessioning Explained for Sports Bettors
23:00 – Platform-Based vs Daily Session Strategies
24:50 – Why Filing Gambling Taxes Is So Complicated
26:45 – Casino Industry Reaction to New Tax Rules
28:00 – How VIP Gamblers & Slot Players Are Impacted
29:40 – Why Casinos Want This Fixed Quickly