Red tape indicators: sports betting, R&D and click-to-cancel

Podcast Summary: The Indicator from Planet Money

Episode: Red Tape Indicators: Sports Betting, R&D and Click-to-Cancel
Release Date: July 11, 2025
Hosts: Adrienne Ma & Waylon Wong
Producer: Cooper Katz McKim
Engineered by: Jimmy Keighley
Fact-Checked by: Sierra Juarez
Editor: Kagan Cannon

Introduction

In this episode of The Indicator from Planet Money, hosts Adrienne Ma and Waylon Wong delve into three significant regulatory changes impacting the economy: the reduction of tax deductions for gambling losses, modifications to research and development (R&D) tax incentives, and the tumultuous journey of the "click to cancel" rule. Through engaging discussions and insightful analysis, the hosts unpack how these changes affect various stakeholders, from professional gamblers to tech companies and consumers.

1. The Impact of Reduced Gambling Loss Deductions

Timestamp: [02:55] - [05:11]

Key Points:

Tax Deduction Adjustment: The Tax Cuts and Jobs Act, signed by President Trump, reduced the deductible percentage of gambling losses from 100% to 90%.
Professional Gamblers Affected: Professional gamblers can no longer offset all their losses against their winnings. For example, with $100,000 in winnings and $100,000 in losses, taxpayers would now only deduct $90,000, resulting in a taxable income of $10,000 instead of zero.
Industry Reaction: This change has stirred significant concern within the gambling community. A professional poker player remarked on social media, "You can't be a professional gambler in the US if this goes through" ([04:45]).
Legislative Response: A Democratic congresswoman from Nevada has introduced a bill to restore the 100% deduction, arguing that the reduction may push gamblers towards unregulated platforms or discourage reporting of winnings.

Notable Quote:

"You're being taxed on money that you didn't take home." — Adrienne Ma ([04:25])

2. Changes to Section 174: R&D Tax Deductions

Timestamp: [05:15] - [07:50]

Key Points:

Historical Context: Section 174 of the U.S. tax code allowed companies to fully deduct their R&D expenses in the year they were incurred, incentivizing innovation and development.
Tax Cuts and Jobs Act Modification: Beginning in 2022, companies are required to amortize R&D costs over several years instead of deducting them immediately. This change effectively reduces the immediate financial benefit of investing in R&D.
Impact on Industries: Sectors like technology have expressed significant concerns, linking the reduced deductions to recent layoffs and decreased investment in R&D.
Restoration Efforts: As part of the latest bipartisan tax and spending bill, there is a move to revert Section 174 back to allowing full, immediate deductions. This restoration aims to reignite investment in R&D and support business growth.

Notable Quote:

"The tax code giveth and the tax code taketh away." — Waylon Wong ([07:38])

3. The Rise and Fall of the Click-to-Cancel Rule

Timestamp: [07:55] - [10:50]

Key Points:

Purpose of the Rule: The Federal Trade Commission (FTC) introduced the "click to cancel" regulation to simplify the process for consumers to cancel subscription services, mirroring the ease of signing up.
Legal Setback: A federal court struck down the rule not on its merits but due to procedural missteps by the FTC. Specifically, the FTC failed to publish the required preliminary report for public comment, instead only releasing the final analysis ([08:43]).
Implications for Consumers and Businesses: The dismissal of the rule delays protections intended to prevent consumers from being trapped in unwanted subscriptions, while businesses avoid the need to streamline their cancellation processes.
Future Prospects: The FTC may attempt to reintroduce the regulation, this time adhering strictly to procedural requirements to ensure its legitimacy and enforceability.

Notable Quote:

"This whole saga shows just how difficult it is sometimes for government agencies to make changes to regulations." — Jeff Guo ([09:49])

Conclusion

Adrienne Ma and Waylon Wong effectively highlight how legislative and regulatory changes ripple through various sectors of the economy. From the nuanced challenges faced by professional gamblers and the technological industry's R&D investments to consumer rights in subscription services, the episode underscores the intricate balance between regulation and economic vitality. The hosts provide a clear understanding of these issues, making complex topics accessible and relevant to everyday listeners.

Notable Quotes with Timestamps:

"You can't be a professional gambler in the US if this goes through." — Professional Poker Player ([04:45])
"The tax code giveth and the tax code taketh away." — Waylon Wong ([07:38])
"This whole saga shows just how difficult it is sometimes for government agencies to make changes to regulations." — Jeff Guo ([09:49])

Credits:

Produced by: Cooper Katz McKim
Engineered by: Jimmy Keighley
Fact-Checked by: Sierra Juarez
Editor: Kagan Cannon
Production: Indicators of Production, NPR

Podcast Summary: The Indicator from Planet Money

Introduction

1. The Impact of Reduced Gambling Loss Deductions

Timestamp: [02:55] - [05:11]

Key Points:

Tax Deduction Adjustment: The Tax Cuts and Jobs Act, signed by President Trump, reduced the deductible percentage of gambling losses from 100% to 90%.
Professional Gamblers Affected: Professional gamblers can no longer offset all their losses against their winnings. For example, with $100,000 in winnings and $100,000 in losses, taxpayers would now only deduct $90,000, resulting in a taxable income of $10,000 instead of zero.
Industry Reaction: This change has stirred significant concern within the gambling community. A professional poker player remarked on social media, "You can't be a professional gambler in the US if this goes through" ([04:45]).
Legislative Response: A Democratic congresswoman from Nevada has introduced a bill to restore the 100% deduction, arguing that the reduction may push gamblers towards unregulated platforms or discourage reporting of winnings.

Notable Quote:

"You're being taxed on money that you didn't take home." — Adrienne Ma ([04:25])

2. Changes to Section 174: R&D Tax Deductions

Timestamp: [05:15] - [07:50]

Key Points:

Historical Context: Section 174 of the U.S. tax code allowed companies to fully deduct their R&D expenses in the year they were incurred, incentivizing innovation and development.
Tax Cuts and Jobs Act Modification: Beginning in 2022, companies are required to amortize R&D costs over several years instead of deducting them immediately. This change effectively reduces the immediate financial benefit of investing in R&D.
Impact on Industries: Sectors like technology have expressed significant concerns, linking the reduced deductions to recent layoffs and decreased investment in R&D.
Restoration Efforts: As part of the latest bipartisan tax and spending bill, there is a move to revert Section 174 back to allowing full, immediate deductions. This restoration aims to reignite investment in R&D and support business growth.

Notable Quote:

"The tax code giveth and the tax code taketh away." — Waylon Wong ([07:38])

3. The Rise and Fall of the Click-to-Cancel Rule

Timestamp: [07:55] - [10:50]

Key Points:

Purpose of the Rule: The Federal Trade Commission (FTC) introduced the "click to cancel" regulation to simplify the process for consumers to cancel subscription services, mirroring the ease of signing up.
Legal Setback: A federal court struck down the rule not on its merits but due to procedural missteps by the FTC. Specifically, the FTC failed to publish the required preliminary report for public comment, instead only releasing the final analysis ([08:43]).
Implications for Consumers and Businesses: The dismissal of the rule delays protections intended to prevent consumers from being trapped in unwanted subscriptions, while businesses avoid the need to streamline their cancellation processes.
Future Prospects: The FTC may attempt to reintroduce the regulation, this time adhering strictly to procedural requirements to ensure its legitimacy and enforceability.

Notable Quote:

"This whole saga shows just how difficult it is sometimes for government agencies to make changes to regulations." — Jeff Guo ([09:49])

Conclusion

Notable Quotes with Timestamps:

"You can't be a professional gambler in the US if this goes through." — Professional Poker Player ([04:45])
"The tax code giveth and the tax code taketh away." — Waylon Wong ([07:38])
"This whole saga shows just how difficult it is sometimes for government agencies to make changes to regulations." — Jeff Guo ([09:49])

Credits:

Produced by: Cooper Katz McKim
Engineered by: Jimmy Keighley
Fact-Checked by: Sierra Juarez
Editor: Kagan Cannon
Production: Indicators of Production, NPR

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Summary

Podcast Summary: The Indicator from Planet Money

Introduction

1. The Impact of Reduced Gambling Loss Deductions

2. Changes to Section 174: R&D Tax Deductions

3. The Rise and Fall of the Click-to-Cancel Rule

Conclusion

Summary

Podcast Summary: The Indicator from Planet Money

Introduction

1. The Impact of Reduced Gambling Loss Deductions

2. Changes to Section 174: R&D Tax Deductions

3. The Rise and Fall of the Click-to-Cancel Rule

Conclusion