Regulatory Change Impact - The One Big Beautiful Bill Act includes a tax provision impacting professional gambling [1] - Starting in 2026, the deduction for gambling losses will be capped at 90% of winnings [1] - This change could significantly impact legal sports betting [2] Economic Consequences - Taxing winnings without full loss offset could lead to taxation on unrealized profits [2] - Professional gamblers may move to offshore markets [2] - Reduced professional gambler volume could lead to less fair betting markets with wider odds and higher fees [3] - State governments could face reduced tax revenue due to offshore migration [3] Industry Implications - Some sports books might welcome the change, as professional gamblers reduce their profits [3] - Legal gambling activity may decline as a result of the tax change [3]