Donald Trump Floats Idea of Axing Federal Tax on Sports Gambling Wins [WATCH]

President Donald Trump said he would consider eliminating federal taxes on gambling winnings, signaling potential openness to another tax-related policy change as his administration continues to pursue broader tax relief efforts.

Trump made the remarks while speaking to reporters aboard Air Force One, according to Fox Business Network.

During the exchange, Trump noted that his administration has already moved to eliminate several forms of taxation but said gambling winnings are not currently included among those changes.

“We have no tax on tips, we have no tax on Social Security, and we have no tax on overtime,” Trump said.

“No tax on gambling winnings, I don’t know. I’m gonna have to think about that.”

Fox Business Network reported that gambling remains widespread across the United States.

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According to data from the American Gaming Association cited by the outlet, nearly 60 percent of American adults gambled at least once in the past year.

Of those, approximately 30 percent gambled at a physical casino, while 21 percent placed sports bets.

Under current federal law, gambling winnings are subject to taxation and reporting requirements enforced by the Internal Revenue Service.

Gamblers who win more than $600 on a single bet are issued a W-2G form.

For winnings exceeding $5,000, a mandatory federal withholding rate of 24 percent applies.

IRS regulations require that all gambling winnings be reported on an individual’s annual tax return using Form 1040.

These rules apply broadly across various forms of gambling, including sports betting, casino games, horse and dog racing, raffles, lotteries, and similar activities.

In addition to reporting requirements, gamblers are required to provide their Social Security Numbers to gambling venues for tax reporting purposes.

Failure to provide a Social Security Number can result in an automatic withholding penalty of 31 percent on winnings, according to IRS rules.

The gambling industry has expanded significantly in recent years, particularly following the legalization of sports betting in multiple states.

Fox Business Network noted that legal NFL gambling alone is projected to reach $30 billion by the end of the year, according to industry experts.

In comparison, betting related to the Super Bowl last year was estimated to total $23.1 billion.

Trump’s comments did not include any specific policy proposal or timeline for potential changes to the taxation of gambling winnings.

His remarks suggested the issue remains under consideration rather than part of an active legislative or regulatory initiative.

The administration has previously highlighted other tax changes as part of its broader economic agenda.

Trump referenced the elimination of taxes on tips, Social Security benefits, and overtime pay as examples of policies already implemented or pursued under his leadership.

Any change to the taxation of gambling winnings would require action by Congress, as federal tax rules are established through legislation.

The White House has not announced whether it plans to propose such a measure or include it in future tax-related discussions with lawmakers.

The prospect of eliminating taxes on gambling winnings could have implications for both consumers and the gaming industry.

Supporters of such a change have argued it could simplify tax compliance for gamblers and reduce administrative burdens.

Critics, however, have raised concerns about potential revenue losses and the broader impact on federal tax collections.

Fox Business Network reported that removing taxes on gambling winnings could incentivize increased wagering and encourage individuals who have not previously gambled to begin placing bets.

No estimates were provided regarding the potential fiscal impact of such a change.

As of now, federal tax policy governing gambling winnings remains unchanged.

Trump’s comments reflect a willingness to consider the issue, but no formal proposal has been introduced.

The matter is likely to draw attention from both lawmakers and industry stakeholders as discussions about future tax policy continue.

For the time being, gamblers remain subject to existing IRS rules requiring the reporting and taxation of winnings across all legal forms of gambling in the United States.

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