President Donald Trump said he would “think about” working to end taxation on gambling winnings in comments made to the press on Air Force One.
Trump noted that his administration is ending several taxes, but taxes on gambling are not among them at this time, Fox Business Network (FBN) reported.
“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.”
“Nearly 60% of all American adults gambled in the past year, according to the American Gaming Association, with 30% gambling at a physical casino and 21% placing sports bets,” FBN added.
Currently, a W-2 form is issued to gamblers who win more than $600 per bet, and withholding for winnings over $5,000 is 24 percent. The IRS rules apply to all forms of gambling, including sports, casinos, horse and dog racing, raffles, lotteries, and the like. Winnings must be reported on IRS Form 1040.
Gamblers also need to provide their Social Security Numbers to venues for reporting purposes or face a 31 percent penalty on winnings.
Legal NFL gambling alone is expected to reach $30 million by the end of the year, experts say. Last year, it was estimated that the Super Bowl generated $23.1 billion in betting.
If taxes on winnings were removed, it could incentivize gamblers to wager more and encourage some would-be gamblers on the fence to start placing bets.
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