For years, betting has been an integral part of the American sports culture, especially in combat sports. However, a federal tax law enacted by Donald Trump’s administration has drawn criticism for seemingly punishing bettors regardless of wins or losses. Now, Dana White has written to the President urging him to reverse the federal tax provision that the UFC CEO believes is actively discouraging legal sports betting in the country.
“The current law makes it irrational to bet in the United States because you could end up owing taxes even when you lose or having a tax bill that exceeds your winnings for the year,” White wrote in the letter. “The UFC supports a healthy, legal sports betting market to drive fan engagement, broadcast value, and sponsorships. When legal betting is discouraged, it hurts the ecosystem we’ve spent years building in partnership with state regulators and licensed operators.”
The provision in question here is part of the One Big Beautiful Bill Act (OBBBA), also known as the Working Families Tax Cuts Act, signed into law on July 4, 2025. Among its changes to tax, welfare, and border policy, the legislation capped the deductibility of gambling losses at 90%, meaning some bettors could end up paying taxes on money they never actually won. For instance, if a bettor won $100,000 and also lost $100,000 in gambling activity, they could still be taxed $10,000 despite making ‘$0’ in actual profit. It basically means bettors can no longer write off the full amount of what they lost.
For that reason, Dana White has called the law harmful for bettors and urged the POTUS to reconsider the particular provision in the legislation. The UFC’s investment in the betting market is substantial.
According to reports, MMA betting reached over $10 billion in 2024, and it has only increased in the last two years. For that reason, the UFC is highly invested in growing its betting platforms. The promotion’s major betting push was anchored by a historic five-year deal with DraftKings signed in 2021, reportedly worth $350 million, before transitioning its official U.S. and Canada sports betting partnership to bet365 in 2026. So, with the current provisions in the OBBBA regarding gambling, the legislation could prevent bettors from placing wagers, negatively affecting their commercial partnership.
Though White’s explanation raised eyebrows at the time, it also showed how heavily the promotion is invested in betting. It must be why the UFC CEO has now received support for his letter.
AGA backs Dana White’s stance in his letter to Donald Trump
Though Dana White’s request to the President may draw varied opinions, the American Gaming Association has shown complete backing for the UFC CEO’s position on changing the law to encourage betting. The association’s vice president, Chris Cylke, issued a statement supporting White’s stance.
“Restoring the 100 percent gambling loss deduction remains a top priority for the AGA, and we continue to actively engage with Congress and the administration to support a legislative solution,” Cylke said in his statement to ESPN. “We appreciate Dana White helping raise awareness about the negative impacts this issue has not only on bettors, but also on businesses and jobs connected to the legal gaming ecosystem.”
The AGA and UFC have worked together previously, launching a responsible gaming public service campaign in 2021. With that existing relationship and White’s personal access to Donald Trump, we could see some significant movement regarding the law in the near future.
