Arkansas Considers Gambling Tax Changes Affecting Big Bettors: What’s at Stake

Arkansas is preparing for a change in how gambling losses are handled at tax time. A new rule, scheduled to take effect in 2026, will limit the amount gamblers can deduct to 90% of their losses instead of the full 100% that’s allowed now. On paper, it doesn’t seem like a major shift, but for those who wager large amounts regularly, the impact could be real.

The majority of casual bettors likely won’t notice anything, but high-stakes players who carefully track their wins and losses could feel the difference. With smaller deductions, the financial risk of large bets grows. Some gamblers are now exploring alternative platforms that fall outside U.S. tax and regulatory frameworks. This includes offshore websites, which often promote faster transactions, larger game libraries, and options to stay anonymous. However, these platforms operate beyond U.S. oversight, raising legal and consumer protection concerns.

This shift in interest toward offshore platforms is something regulators and lawmakers are aware of, and some have raised concerns. In states like Arkansas, where gambling taxes are already feeding into public budgets, the loss of even a small group of high-value players could trickle outward. It’s not just about the tax revenue itself; it’s also about where the money is being spent. If more people start using platforms that aren’t under US oversight, the local economy could take a hit in subtle ways.

Across the country, 2025 has been a busy year for gambling legislation. Several states have been updating their betting laws, with some looking to expand online access and others focused on tightening compliance. Meanwhile, discussions in Congress have started taking shape around how gambling is treated under federal tax rules. The proposed 90% cap on deductions is part of a wider tax package that’s sparked debate on several fronts, and this gambling clause is one of the areas getting the most pushback from industry groups.

Some members of Congress have already voiced support for reversing the rule before it goes into effect. A bill from Nevada representative Dina Titus has been put forward that would restore the full 100% deduction and protect how gambling income is reported under current standards. The bill is still in the early stages, but it’s already attracting attention from both sides of the aisle, especially in states where online gambling is gaining ground.

Most casual players probably won’t follow the fine print of what’s happening, but the high earners and frequent bettors definitely will. These are the people who already know how to track every dollar spent and won, and when those dollars start getting treated differently, it changes how they play. Whether they scale back or shift to offshore platforms, the result is the same: fewer large bets staying in the regulated US market.

With a few months still left in 2025, there’s time for these changes to be debated and possibly amended. For now, the gambling community is keeping one eye on Congress and another on how the rule might affect where the biggest players put their money.

This article is for informational purposes only. Gambling laws vary by jurisdiction, and readers are advised to review and comply with local regulations before using a platform.