Faced with the playing provision of the One Big Beautiful Bill tax and spending invoice, some gamblers are reportedly snapping up losing lottery tickets on eBay.
The tax change went into impact in January and permits gamblers to deduct solely 90% of losses. The ramifications of the tax provision had been first highlighted by poker professionals. The regulation has led to semi-retirement for some high-stakes event poker gamers like Erik Seidel.
Now, some gamblers seeking to declare much more losses should buy lottery tickets for a “paper trail” of extra dropping wagers. However, the strategy might not sq. with the IRS. Those discovered to have employed the lottery losses plan may run afoul of federal tax regulation.
“This is a way to offset your taxes – clearly tax fraud,” University of North Carolina Kenan-Flagler Business School professor Jeffrey Hoopes advised Fortune. Hoopes additionally serves as analysis director of the UNC Tax Center.
“There’s lots of ways to commit tax fraud. This is just an interesting one, and usually you don’t buy it on eBay, so it’s an interesting example.”
Garbage Sack Full Of Tickets
A fast search of eBay yields quite a few entries for dropping tickets. As of Monday, gamblers may purchase a stack of three,000 losers for $228. They may buy 19 kilos of expired New York scratch-off tickets for $125.
On a smaller price range? One itemizing has $5,000 in dropping $50 Ohio scratch-off tickets for $50. Another itemizing merely particulars used Mega Millions tickets on the market at a worth of $130, with an image exhibiting a rubbish sack stuffed with the paper entries.
Some listings say the tickets can be utilized as “tax write-offs” or “tax deductions.” While most tax filers take the usual deduction, some higher-stakes gamers itemize losses.
This technique brings extra IRS scrutiny. Filers should retain a diary of winnings and losses, receipts, tickets, statements, or different information testifying to the veracity of their tax reporting.
Some gamblers could also be tempted to regulate their reporting with dropping tickets, bringing house winnings without having to pay taxes on at the least a few of that complete.
Site Tries To Weed Out Listings Promising Tax Write-Offs
Despite that, Hoopes and eBay each word that some consumers might merely be seeking to acquire the dropping tickets. The firm screens for listings promising a tax write-off, however some references get by the positioning’s protocols.
“Expired lottery tickets with collectible value may be listed on eBay as long as the listing clearly states the item is expired and is permitted for sale under local law” an eBay spokesperson advised Fortune.
“Listings that promote potentially improper uses of these items are not allowed and will be removed.”
The firm says that listings violating its coverage are faraway from the platform. For these trying to make use of the tickets to offset losses, there’s some appreciable danger. Federal tax evasion is a felony. Those discovered responsible can spend as much as 5 years in federal jail, with fines reaching $100,000 for people. Violators should additionally pay all taxes owed and the prices of prosecution.
The gaming business continues to develop within the U.S. The business reported record-breaking on line casino income of $783.6 billion in 2025, a 9.1% enhance from 2024, in keeping with the American Gaming Association.
Tribal gaming income hit a report $46.2 billion in 2025, a year-over-year enhance of 5.3%, in keeping with the National Indian Gaming Commission.
Recently, a Las Vegas tax skilled outlined how a lot every participant on the World Series of Poker closing desk would lose in taxes. California-based Jamie Shaevel misplaced essentially the most by share, with 50.4% of his $1.5 million in winnings for ending in seventh place.
