The “Phantom Income” Gambling Tax Problem Explained

A new gambling tax rule starting in 2026 could create a major problem for high-volume gamblers. Under the rule, gambling losses may only be 90% deductible, which means a player who wins $100,000 and loses $100,000 could still be treated as having taxable income. This is why gamblers are calling it “phantom income.” Poker players, blackjack players, sports bettors, slot players, and anyone who gambles regularly need to understand what this could mean. Should a gambler who breaks even still have to pay tax? Comment yes or no. This video is for entertainment and informational purposes only and is not tax advice. Always speak with a qualified tax professional about your personal situation.