In the letter, Dana White said that the cap is already starting to create problems for the gambling industry.
UFC President Dana White penned a letter to President Donald Trump pleading for him to reverse a provision of his signature tax law.
White asked the president to undo a 90% cap on gambling loss deductions that was approved as part of his "big beautiful bill," according to a letter first reported by an independent journalist. ESPN reported that the organization independently confirmed the authenticity of the letter.
Traders on prediction market platform Kalshi don't think the law will be repealed this year, but White's letter moved the odds. After the first report of the letter, chances that the cap will be repealed this year jumped to 37% from 20%. They have since fallen back to 29%.
The provision limits how much taxpayers can deduct from their taxable winnings from gambling. Before, if someone won both $5,000 through gambling and lost $5,000, they wouldn't pay any tax. Now, a taxpayer is only able to deduct $4,500, and thus is left with $500 of taxable winnings.
In his letter, White praised Trump's tax law, but said this provision in the package is already causing problems.
"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," he wrote, according to a screenshot of the letter. "When legal betting is discouraged, it hurts the ecosystem we've spent years building in partnership with state regulators and licensed operators." The change was included to allow the tax law to satisfy procedural rules in the U.S. Senate so the overall package could be approved with only Republican votes, according to Tax Foundation think tank.
In a statement, the American Gambling Association praised White for raising the salience of the issue. Nevada politicians — where the UFC is headquartered — praised the letter. Sen. Catherine Cortez Masto, D-Nev., has a bill to reverse the provision with Sen. Ted Cruz, R-Texas.
"It's hurting players, our gaming and tourism industry, and the workers who count on them for their livelihoods," she said in a post on X. "I agree with Dana White, the President needs to join us and fix this now." Disclosure: CNBC and Kalshi have a commercial relationship that includes customer acquisition and a minority investment.
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