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Senate Republicans block attempt to roll back massive tax hike on professional gamblers

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Senate Republicans block attempt to roll back massive tax hike on professional gamblers
News

News

Senate Republicans block attempt to roll back massive tax hike on professional gamblers

2025-07-11 03:23 Last Updated At:03:31

WASHINGTON (AP) — Senate Republicans on Thursday blocked an attempt to reverse a little-noticed provision from their tax and spending cuts law that professional gamblers warn could be the end of their industry.

Democratic Sen. Catherine Cortez Masto of Nevada sought unanimous passage of a bill that would roll back the change on gambling tax deductions, but Republican Sen. Todd Young of Indiana objected, stalling the proposal for now.

The emerging fight over the gambling provision is likely only the beginning of the fallout from the new tax law and its impact on the country. Spanning more than 900 pages, the bill signed into law by President Donald Trump last week contained a slew of provisions changing federal programs and the tax code, many of which lawmakers admit they are only now beginning to fully digest.

“My understanding is many Republicans, many Democrats did not even know it was part of that process,” Cortez Masto said of the gambling provision.

Under the new tax law, starting in 2026, individuals can only deduct 90% of their gambling losses up to the amount of their winnings. That’s a change from the previous rule, which allowed gamblers to deduct 100% of their losses, up to the amount they won.

The change will only significantly impact those who gamble larger amounts and who take the extra steps to itemize and deduct their losses. But for those individuals, the impact could be steep.

In practice, for example, under the old rule, someone who wins $100,000 and loses $100,000 could deduct the full $100,000 in losses and owe nothing. Under the new rule, they would only be able to deduct $90,000 and would still owe taxes on the remaining $10,000, despite having lost all their winnings.

“This new amendment to the One Big Beautiful Bill Act would end professional gambling in the U.S. and hurt casual gamblers, too,” Phil Galfond, a professional poker player, said on social media just days ahead of the bill's final passage.

The provision was included in the bill's text released on June 16 by Senate Finance Committee Chair Mike Crapo. Some senators have said they weren't aware of the provision, and it only publicly came to light days ahead of the bill's passage, with professional gamblers and media figures drawing attention to it.

“Now I see Republican senators walking all over the Capitol saying they didn’t even know anything about this policy," said Sen. Ron Wyden, the top-ranking Democrat on the Senate Finance Committee.

“The fact is, when you rush a process like this, this way, and cram in all of these policies that you haven’t really thought about, you risk consequences for people back home. That is what is going on here,” Wyden. said

The provision is estimated to generate over $1.1 billion in tax revenue over eight years. The entirety of the tax break and spending cuts bill will increase the deficit by nearly $3.3 trillion from 2025 to 2034, according to the nonpartisan Congressional Budget Office.

Republicans say it was a necessary procedural change tied to the reconciliation process, which allowed them to pass the sweeping bill without Democratic support.

Young, the Indiana Republican who objected to Cortez Masto’s bill, said he supports the policy but would only agree to undo it if Democrats accepted other provisions in return.

“I strongly support the underlying bill, but will have to object unless you can agree to my request,” Young said on the Senate floor.

Thursday's attempt by Cortez Masto won't be the last. On Wednesday, she introduced a bill that will first have to go through committee, but has bipartisan support, to restore the full gambling deduction. In the House, Nevada Democratic Rep. Dina Titus has also introduced a bill attempting to return to the previous standard.

President Donald Trump signs his signature bill of tax breaks and spending cuts at the White House, Friday, July 4, 2025, in Washington, surrounded by members of Congress. (AP Photo/Evan Vucci)

President Donald Trump signs his signature bill of tax breaks and spending cuts at the White House, Friday, July 4, 2025, in Washington, surrounded by members of Congress. (AP Photo/Evan Vucci)

GUANARE, Venezuela (AP) — Freedom came too late for Edilson Torres.

The police officer was buried Tuesday in his humble, rural hometown following his death in a Venezuelan prison, where he was held incommunicado since being detained in December on what his family said were politically motivated accusations.

Torres, 51, died of a heart attack Saturday, just as his family awaited the government's promised release of prisoners following the U.S. capture of then-President Nicolás Maduro. The loss left his family reeling.

Now scores of families — who once hesitated to approach advocacy groups — are coming forward to register their loved ones as “political prisoners" in the hope that they might have a more optimistic future than Torres.

Foro Penal, which tracks and advocates for Venezuelan prisoners, has received a “flood of messages” from families since last week, said Alfredo Romero, director of the nongovernmental organization.

“They didn’t report it out of fear, and now they’re doing it because, in a way, they feel that there is this possibility that their families will be freed,” Romero said. “They see it as hope, but more importantly, as an opportunity.”

The head of Venezuela’s national assembly, Jorge Rodríguez, said last week that a “significant number” of Venezuelan and foreigners imprisoned in the country would be released as a gesture to “seek peace” following the operation that captured Maduro in the early hours of Jan. 3. The U.S. and Venezuela's opposition have long demanded the widespread release of detained opposition figures, activists and journalists, whom they claim are used as a political tool by the ruling party.

Venezuela’s government denies that there are prisoners unjustly detained, accusing them of plotting to destabilize Maduro’s government.

Following Torres' death, Venezuela's Attorney General Tarek William Saab said in a statement that the case had been assigned to a terrorism unit and “was linked to criminal activities detected by state security agencies.” He did not offer any details, but the vague language tracks with past accusations leveled against real or perceived government critics.

Romero said that of the roughly 300 families who reached out to Foro Penal, about 100 cases so far have been confirmed as politically motivated. Most of those reported over the past few days, he said, once worked for Venezuela's military. That is on top of more than 800 people that the organization says continue to be detained for political reasons in Venezuela.

As of Tuesday evening, Foro Penal had confirmed 56 prisoners it said were detained for political reasons had been freed. The group criticized the lack of government transparency over the releases. Venezuela’s government negated the organization's count, and reported a far higher figure of 400 Tuesday afternoon.

But the government did not provide evidence of the releases, a time range in which they were carried out nor identify those freed, making it impossible to determine whether those freed were behind bars for political or other reasons.

Before Torres' funeral on Tuesday, a procession of cars and motorcycles stopped at a local jail, where his wife remains detained on disputed accusations.

“My little brother, my little brother,” Emelyn Torres said between sobs after his casket, cloaked in Venezuela's flag, arrived at her home for the wake. A few feet away, their grandmother nearly fainted as dozens of people crammed into the living room to pay their respects.

Hours earlier, as a minivan transported the body of her brother 267 miles (430 kilometers) from the capital, Caracas, to Guanare, Torres learned that other men linked to the WhatsApp group that led to her brother's arrest had just been released from prison. She wailed.

Among those who have been released are: human rights attorney Rocío San Miguel, who immediately relocated to Spain; Biagio Pilieri, an opposition leader who was part of Nobel Peace Prize winner María Corina Machado’s 2024 presidential campaign; and Enrique Márquez, a former electoral authority and presidential candidate.

Italian businessman Marco Burlò, who was released from prison Monday, told reporters outside a Rome airport Tuesday that he was kept isolated throughout his detention, which he characterized as a “pure and real kidnapping.”

“I can’t say that I was physically abused, but without being able to talk to our children, without the right to defense, without being able to speak to the lawyer, completely isolated, here they thought that I might have died,” he said.

The small set of releases over the past few days continues to fuel criticisms by families, human rights watchdogs at the United Nations and U.S. politicians, who have accused the government of not following through on their word of a wider release.

But the rapid political shifts in the Latin American nation and the distant possibility of release simultaneously marked a rare moment of hope for many families who have spent years wondering if their loved ones would ever be freed.

Part of the reason that Romero said he believed so many people had not come forward is the government's ongoing crackdown on dissent since Venezuela's tumultuous 2024 election, which Maduro claimed to have won despite ample credible evidence to the contrary.

As mass street protests broke out, authorities said they detained more than 2,000 people. In the month after July elections, Venezuela's government passed a law — dubbed the “anti-NGO law” by critics — making it easier for the government to criminalize human rights groups.

That had a chilling effect, Romero said, making families hesitant to come forward — until now.

Janetsky reported from Mexico City.

Follow AP’s coverage of Latin America and the Caribbean at https://apnews.com/hub/latin-america

Relatives of political prisoners gather at the Central University of Venezuela to call for their release in Caracas, Venezuela, Tuesday, Jan. 13, 2026. (AP Photo/Matias Delacroix)

Relatives of political prisoners gather at the Central University of Venezuela to call for their release in Caracas, Venezuela, Tuesday, Jan. 13, 2026. (AP Photo/Matias Delacroix)

Jacklin Ibarreto, whose father Miguel Ibarreto is detained, lays out photos of political prisoners at the Central University of Venezuela in Caracas, Venezuela, Tuesday, Jan. 13, 2026. (AP Photo/Matias Delacroix)

Jacklin Ibarreto, whose father Miguel Ibarreto is detained, lays out photos of political prisoners at the Central University of Venezuela in Caracas, Venezuela, Tuesday, Jan. 13, 2026. (AP Photo/Matias Delacroix)

Members of a motorcycle club, friends of Edilson Torres, a Venezuelan police officer who died in prison a month after being arrested on accusations of treason, carry his coffin at a cemetery in Guanare, Venezuela, Tuesday, Jan. 13, 2026. (AP Photo/Ariana Cubillos)

Members of a motorcycle club, friends of Edilson Torres, a Venezuelan police officer who died in prison a month after being arrested on accusations of treason, carry his coffin at a cemetery in Guanare, Venezuela, Tuesday, Jan. 13, 2026. (AP Photo/Ariana Cubillos)

Relatives stand by the coffin of Edilson Torres, a Venezuelan police officer who died in prison a month after being arrested on accusations of treason, in Guanare, Venezuela, Tuesday, Jan. 13, 2026.. (AP Photo/Ariana Cubillos)

Relatives stand by the coffin of Edilson Torres, a Venezuelan police officer who died in prison a month after being arrested on accusations of treason, in Guanare, Venezuela, Tuesday, Jan. 13, 2026.. (AP Photo/Ariana Cubillos)

Relatives of Edilson Torres, a Venezuelan police officer who died in prison a month after being arrested on accusations of treason, gather around his grave during his funeral in Guanare, Venezuela, Tuesday, Jan. 13, 2026. (AP Photo/Ariana Cubillos)

Relatives of Edilson Torres, a Venezuelan police officer who died in prison a month after being arrested on accusations of treason, gather around his grave during his funeral in Guanare, Venezuela, Tuesday, Jan. 13, 2026. (AP Photo/Ariana Cubillos)

Students lay out photos of people they consider political prisoners at the Central University of Venezuela in Caracas, Venezuela, Tuesday, Jan. 13, 2026. (AP Photo/Matias Delacroix)

Students lay out photos of people they consider political prisoners at the Central University of Venezuela in Caracas, Venezuela, Tuesday, Jan. 13, 2026. (AP Photo/Matias Delacroix)

Jacklin Ibarreto, whose father Miguel Ibarreto is detained, waits outside the Rodeo I prison in Guatire, Venezuela, Friday, Jan. 9, 2026, after National Assembly President Jorge Rodriguez said the government would release Venezuelan and foreign prisoners. (AP Photo/Matias Delacroix)

Jacklin Ibarreto, whose father Miguel Ibarreto is detained, waits outside the Rodeo I prison in Guatire, Venezuela, Friday, Jan. 9, 2026, after National Assembly President Jorge Rodriguez said the government would release Venezuelan and foreign prisoners. (AP Photo/Matias Delacroix)

Relatives and friends of political prisoners hold candles calling for their loved ones to be set free outside the Rodeo I prison in Guatire, Venezuela, Friday, Jan. 9, 2026 after the government announced prisoners would be released. (AP Photo/Matias Delacroix)

Relatives and friends of political prisoners hold candles calling for their loved ones to be set free outside the Rodeo I prison in Guatire, Venezuela, Friday, Jan. 9, 2026 after the government announced prisoners would be released. (AP Photo/Matias Delacroix)

Relatives stand beside the coffin during the wake of Edilson Torres, a Venezuelan police officer who died in prison a month after being arrested on accusations of treason, in Guanare, Venezuela, Tuesday, Jan. 13, 2026. (AP Photo/Ariana Cubillos)

Relatives stand beside the coffin during the wake of Edilson Torres, a Venezuelan police officer who died in prison a month after being arrested on accusations of treason, in Guanare, Venezuela, Tuesday, Jan. 13, 2026. (AP Photo/Ariana Cubillos)

El Helicoide, the headquarters of Venezuela's intelligence service and detention center, stands in Caracas, Venezuela, Friday, Jan. 9, 2026, after National Assembly President Jorge Rodriguez said the government would release Venezuelan and foreign prisoners. (AP Photo/Ariana Cubillos)

El Helicoide, the headquarters of Venezuela's intelligence service and detention center, stands in Caracas, Venezuela, Friday, Jan. 9, 2026, after National Assembly President Jorge Rodriguez said the government would release Venezuelan and foreign prisoners. (AP Photo/Ariana Cubillos)

Students lay out photos of people they consider political prisoners at the Central University of Venezuela in Caracas, Venezuela, Tuesday, Jan. 13, 2026. (AP Photo/Matias Delacroix)

Students lay out photos of people they consider political prisoners at the Central University of Venezuela in Caracas, Venezuela, Tuesday, Jan. 13, 2026. (AP Photo/Matias Delacroix)

Flor Zambrano, whose son, Rene Chourio, she says is detained at Zone 7 of the Bolivarian National Police for political reasons, embraces relatives of other detainees outside the facility in Caracas, Venezuela, Monday, Jan. 12, 2026. (AP Photo/Matias Delacroix)

Flor Zambrano, whose son, Rene Chourio, she says is detained at Zone 7 of the Bolivarian National Police for political reasons, embraces relatives of other detainees outside the facility in Caracas, Venezuela, Monday, Jan. 12, 2026. (AP Photo/Matias Delacroix)

A photo of Edilson Torres, a Venezuelan police officer who died in prison a month after being arrested on accusations of treason, and his family adorns his coffin during his wake at his home in Guanare, Venezuela, Monday, Jan. 12, 2026. (AP Photo/Ariana Cubillos)

A photo of Edilson Torres, a Venezuelan police officer who died in prison a month after being arrested on accusations of treason, and his family adorns his coffin during his wake at his home in Guanare, Venezuela, Monday, Jan. 12, 2026. (AP Photo/Ariana Cubillos)

Relatives of Edilson Torres, a Venezuelan police officer who died in prison a month after being arrested on accusations of treason, sit by his coffin during his wake in Guanare, Venezuela, Monday, Jan. 12, 2026. (AP Photo/Ariana Cubillos)

Relatives of Edilson Torres, a Venezuelan police officer who died in prison a month after being arrested on accusations of treason, sit by his coffin during his wake in Guanare, Venezuela, Monday, Jan. 12, 2026. (AP Photo/Ariana Cubillos)

Emelyn Torres leans over the casket of her brother, Edilson Torres, a Venezuelan police officer who died in prison a month after being detained on accusations of treason, during his wake at his home in Guanare, Venezuela, Monday, Jan. 12, 2026. (AP Photo/Ariana Cubillos)

Emelyn Torres leans over the casket of her brother, Edilson Torres, a Venezuelan police officer who died in prison a month after being detained on accusations of treason, during his wake at his home in Guanare, Venezuela, Monday, Jan. 12, 2026. (AP Photo/Ariana Cubillos)

Emelyn Torres and Maria Cristina Fernandez, the sister and grandmother of Edilson Torres, a Venezuelan police officer who died in prison after being detained on accusations of treason, embrace during his wake at his home in Guanare, Venezuela, Monday, Jan. 12, 2026. (AP Photo/Ariana Cubillos)

Emelyn Torres and Maria Cristina Fernandez, the sister and grandmother of Edilson Torres, a Venezuelan police officer who died in prison after being detained on accusations of treason, embrace during his wake at his home in Guanare, Venezuela, Monday, Jan. 12, 2026. (AP Photo/Ariana Cubillos)

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