BetSaracen Executive Downplays the Impact of Tax Changes

A representative from an Arkansas sports betting operator has responded to a federal tax change that will reshape how gambling losses are deducted starting in 2026, claiming that budget gamblers won’t feel the impact.  

The adjustment is included in President Donald Trump’s so-called "Big, Beautiful Bill." It changes how gamblers can claim losses against winnings, capping the current 100% deduction of losses at 90%. 

The change has attracted criticism from industry figures, and a senior manager at Saracen Casino Resort this week commented on how it would affect regular customers, stating that the impact on most players could be minimal.

“The average wager at Saracen on the sportsbook is somewhere around $30, what I call a skin-in-the-game bet. Do we take large bets? Yeah, we've had people bet hundreds of thousands of dollars on a given game. But the key here is our tens of thousands of active users every month are what I would consider casual, low-dollar recreational bettors,” said the Chief Market Officer at Saracen Casino Resort, Carlton Saffa. 

However, while the change would likely affect only a fraction of bets, Saffa said he was opposed to it and would support federal legislation to reverse it.

An attempt by a Nevada Senator to remove the change from the bill was blocked last week. Still, Representative Dina Titus is advancing a parallel effort in the House of Representatives, which Saffa said had his full support. 

New Jersey compromise

Meanwhile, lawmakers have compromised on a planned significant rise in New Jersey sports betting tax, but questions remain about the potential impact on gamblers in the state. 

The new rate is set to be 19.75%, which represents a decrease from Governor Phil Murphy's originally planned figure of 25%. 

The new rate, which is included in the state’s 2025-26 budget, closes the gap between the existing 15% rate and Murphy’s original plan. The deal comes at the same time as the gaming industry in the state has been recording record-setting revenue. The figure for May was $614.7 million, representing a 20.5% increase year over year.

The new tax rate aims to raise more revenue, but while the previous rate of 25% was projected to generate $402 million in additional funds, no estimate for the 19.5% rate has been made. In addition, stakeholders are now concerned about whether betting companies will introduce user taxes.

An increase in the gambling tax in the Illinois sports betting market earlier this year prompted FanDuel to announce a per-bet fee for every wager struck in the state from July 1, and DraftKings will enforce a $0.50 fee on all online wagers from September.  

So far, there’s no indication that New Jersey sports betting app operators are planning to do the same, although both FanDuel and DraftKings urged customers to oppose the tax hike during legislative debates.