Trump Signals Potential Elimination of Federal Taxes on Gambling Winnings

By Theodore Bunker | Wednesday, December 10, 2025

President Donald Trump indicated he is considering eliminating federal taxes on gambling winnings during a recent interview aboard Air Force One.

When asked whether he would support ending taxes on gambling payouts, Trump stated: “We have no tax on tips, we have no tax on Social Security, and we have no tax on overtime. No tax on gambling winnings, I don’t know. I’m gonna have to think about that.”

The president has also floated the possibility of dramatically shrinking the federal income tax, at times suggesting it could be cut sharply or even eliminated.

Trump previously claimed the government might “cut out income tax completely” within a couple of years, arguing that tariff revenue and investment would be “so large.”

Any change to the tax treatment of gambling winnings would require congressional action. It remains unclear what form such a proposal would take or whether it would include income-level or dollar-amount limits.

The White House has not announced a legislative plan tied to these remarks, nor is an estimate of potential revenue loss currently available.

Under current federal law, gambling winnings are taxable and must be reported on annual tax returns. The IRS defines gambling income as including winnings from lotteries, raffles, horse races, casinos, plus cash payouts and the fair market value of prizes such as cars and trips.

Budget analysts have warned that sweeping tax cuts would be difficult to finance without major spending reductions, new revenue sources, or increased deficits.

Trump has argued that tariffs could generate sufficient revenue to enable broad tax relief, a claim that some economists have contested.

Theodore Bunker has more than a decade of experience covering news, media, and politics.