Rep. Pat Harrigan (R-NC) is pushing to close a controversial Medicaid loophole that could let Americans qualify for benefits by gambling as little as $580 a month β without actually holding a job. His newly introduced No Gambling for Medicaid Act aims to amend federal rules that currently count gross gambling winnings toward income thresholds tied to work requirements.
The $580 Workaround
Starting January 2027, the One Big Beautiful Act will require many Medicaid recipients aged 19-64 to prove they work 80 hours monthly or show equivalent income. At $7.25 federal minimum wage, that translates to $580 β a target easily gamed, Harrigan argues, by placing offsetting sports bets. “A recipient can reach $580 in gross winnings without risking significant net losses,” notes a bill summary, citing scenarios where betting both sides of a game at different sportsbooks yields qualifying “income” on paper.
From Casinos to Welfare Rolls?
The loophole stems from how Medicaid counts unadjusted gambling profits as income, mirroring IRS rules. In an October social media post, Harrigan blasted the idea that “placing bets counts as holding a job,” sharing a Washington Post op-ed warning of perverse incentives. “A law meant to encourage work could encourage more frequent gambling instead,” the congressman told Breitbart News exclusively.
Carveouts and Controversy
While exempting professional gamblers (classified as businesses), the bill defines “covered gambling winnings” broadly to include prizes, awards, and betting proceeds. The move comes as most states plan minimal enforcement β requiring just one compliant month every six β despite expansive exemptions for parents, caregivers, and others. CMS finalized the underlying 80-hour rule in June, setting up a 2027 rollout that Harrigan now seeks to amend before it takes effect.
Source: www.breitbart.com β https://www.breitbart.com/politics/2026/11/10/exclusive-gop-rep-harrigan-introduces-bill-to-close-gambling-loophole-in-medicaid-work-requirements/