President Donald Trump has floated a new idea on taxes. On Tuesday, the POTUS said he would consider eliminating federal taxes on gambling winnings. This comes amid his administration’s push to reduce taxes on regular income, tips, and overtime. On December 10, he was asked aboard Air Force One whether he planned to cut taxes on gambling winnings.

While the Republican President did not give a definite answer, he said he would keep the option open. “We have no tax on tips, we have no tax on Social Security, and we have no tax on overtime,” Trump said. Then he added, “No tax on gambling winnings, I don’t know. I’m gonna have to think about that.”

According to Fox Business, over 60% of American adults have gambled in the past year. The American Gaming Association says that 30% of that gambling took place at physical casinos and 21% through online sports betting.

According to the Internal Revenue Service (IRS), the standard withholding rate for gambling winnings of $5,000 or more is 24%. Anyone who wins more than $600 is issued a W-2G form. This withholding applies to lotteries, horse races, casinos, raffles, and other types of gambling.

The IRS also notes that if an individual wins more than $5,000, up to 28% of their total winnings may be withheld as federal income tax. If the gambling establishment does not have the winner’s Social Security number on file, the withholding rate can increase to 31%.

According to the IRS, all gambling winnings must be reported on a Form 1040. Gambling losses can be deducted for the year, but only up to the amount of total winnings.

His statement comes a few months after the One Big Beautiful Bill Act (OBBBA) was signed into law. The bill included provisions stating there would be “no tax on tips” and “no tax on overtime,” a move that allowed millions of Americans to benefit from the new tax breaks.