Captain Jack Explains Sports Betting Tax Laws: Everything You Need To Know

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 explained90% gambling loss deduction ruleFair Bet Act & FULL HOUSE Act updatesIRS guidance issuesSessioning strategies for gamblersSports betting scandal newsHow casinos and VIP bettors are impactedFollow Thomas Viola on X at @TVatWork00:00 – Welcome to Talk to Tom Podcast (Episode 1 Introduction)01:20 – Why Captain Jack Is the First Guest02:45 – New Gambling Tax Law Explained (90% Loss Deduction Rule)04:30 – Why This Hurts Sports Bettors & Advantage Players06:10 – Congressional Fix Attempts Overview06:50 – Fair Bet Act Breakdown (Dina Titus Proposal)08:00 – Why Tax Revenue Replacement Is Complicating Reform09:40 – Laffer Curve & Gambling Tax Economics Explained11:05 – Republican Support & Political Momentum12:15 – FULL HOUSE Act Overview13:50 – Timeline Pressure Before Midterm Elections15:00 – Prediction Markets & Betting on Legislative Outcomes16:00 – Filing Extensions & Tax Payment Risks17:15 – CPA Disagreements on Gambling Tax Strategy18:30 – IRS Lack of Guidance Problem20:05 – Audits, Enforcement Timelines & Risk Reality21:00 – Sessioning Explained for Sports Bettors23:00 – Platform-Based vs Daily Session Strategies24:50 – Why Filing Gambling Taxes Is So Complicated26:45 – Casino Industry Reaction to New Tax Rules28:00 – How VIP Gamblers & Slot Players Are Impacted29:40 – Why Casinos Want This Fixed Quickly