A taxing change for VIPs: Will Trump’s omnibus bill force books to add sweeteners for whale players?

Summary

By Matt Rybaltowski | 25th July 2025 | Reading time: ~4 minutes

This article explains recent tax moves at state and federal level that are changing the economics of high-stakes sports betting. Illinois introduced a tax on wagering handle and a late amendment to the federal omnibus bill (dubbed the “One Big Beautiful Bill”) reduces the percentage of gambling losses that can be deducted — from 100% to 90% of annual losses. Operators are already reacting by exploring ways to pass costs on to customers and by rethinking VIP incentives. At the same time, prediction markets such as Kalshi may look more attractive to high rollers because of tax and structural advantages. The piece also considers how UK-style regulatory pressure on VIP programmes and new US legislative proposals (including the Fair Bet Act) could shape operator responses.

Source

Source: https://igamingbusiness.com/sports-betting/tax-changes-added-pressure-sportsbook-vip-teams/

Key Points

• Illinois has introduced the US’s first tax on sports betting handle, increasing costs for operators and bettors.
• A Republican amendment to the federal omnibus bill limits gamblers to deducting up to 90% of annual losses (down from 100%).
• Several sportsbooks plan to pass some of the new tax burden to customers; this could hit recreational and professional bettors alike.
• VIPs make up a tiny share of accounts but account for a large slice of handle and revenue, so changes disproportionately affect operator economics.
• Prediction markets (eg. Kalshi) can present a tax and structural advantage for big traders, drawing some high rollers away from traditional books.
• Operators are considering beefing up VIP perks — experiential rewards, meet-and-greets, concerts — to keep whale players engaged despite tax headwinds.
• UK regulatory moves have already slashed VIP programme volume by around 90%; US lawmakers are watching and proposals such as the SAFE Bet Act include VIP restrictions.
• The Fair Bet Act, introduced by Rep Dina Titus, seeks to restore full deduction for gamblers and has bipartisan support; hearings are underway.

Why should I read this?

Because if you work in sportsbook operations, VIP management, finance or regulation, this directly affects margins and product strategy. Taxes and deductions changing mean VIP economics shift overnight — so expect operators to get creative with perks and pricing. TL;DR: your high-value players are getting pricier to keep, and that will shape offers, promotions and even where whales choose to play.

Context and relevance

The story sits at the intersection of taxation, regulatory risk and customer economics. It matters now because policy changes have immediate P&L implications for US sportsbooks and could accelerate migration of big bettors to alternative platforms with lighter tax treatment. It also highlights how international regulatory trends (the UK clampdown on VIP schemes) inform US debate and forthcoming legislation. Senior execs, product teams and compliance officers should be briefing their boards.