Another Bill to Restore the Gambling Deduction Filed in Congress
Posted on: January 13, 2026, 07:42h.
Last updated on: January 13, 2026, 09:04h.
- Nevada’s congressional delegation is spearheading the restoration of the gambling losses deduction
- The One Big Beautiful Bill trimmed the gambling deduction from 100% to 90% for taxpayers
Congress has fielded yet another bill that seeks to restore the gambling deduction to 100% for itemized taxpayers.
On Monday, US Reps. Steven Horsford (D-NV) and Max Miller (R-OH) introduced bipartisan legislation to rectify a tax provision related to the gaming industry in the One Big Beautiful Bill (OBBB). A last-minute add-on in the Republicans’ tax law omnibus was that beginning with the 2026 tax year, federal taxpayers filing itemized returns can only deduct up to 90% of their gambling losses against their winnings.
Taxing people on money they never actually earned is fundamentally unfair and harmful to Nevada’s economy,” said Horsford. “There is strong bipartisan agreement that this provision was a mistake, and Congress must act to correct it.”
The 90% cap on gambling deductions was affixed to the OBBB while the legislation was in the Senate Finance Committee. Supporters of the gambling deduction limit say it ensures that high-volume gamblers are guaranteed to pay some sort of federal tax.
Lots of Legislation, Little Action
Horsford and Miller are behind the FULL House Act, or the Facilitating Useful Loss Limitations to Help Our Unique Service Economy Act. Officially House Resolution 6985, the bill is a clone of the FULL House Act in the Senate that Sens. Catherine Cortez Masto (D-NV) and Ted Cruz (R-TX) introduced in July.
“Losses from wagering transactions shall be allowed only to the extent of the gains from such transactions,” the bill reads.
The FULL House Acts are in addition to US Rep. Dina Titus’ (D-NV) FAIR Bet Act. The Fair Accounting for Income Realized from Betting Earnings Taxation Act would also restore the gambling loss deduction to 100%. The FAIR Bet Act has the most support of the three bills, with 23 cosponsors, including 13 Democrats and 10 Republicans. Horsford and Miller are among the supporters.
House Ways and Means Committee Chair Jason Smith (R-MO) has been blamed for stalling the FAIR Bet Act’s consideration.
Since the Senate inserted a provision in the Big, BS Budget Bill to lower the gambling loss deduction to 90%, I have been leading the bipartisan, bicameral effort to correct this unfair tax policy so that gamers do not have to pay taxes on phantom income. Now I am again urging Rep. Jason Smith to finally do what’s right and include a fix in the next Ways and Means Committee markup that protects many livelihoods,” Titus wrote on X.
Though the FAIR Bet and FULL House Acts have garnered plenty of media headlines, neither has been put up for a committee vote. Horsford and Miller’s FULL House has also been directed to the House Ways and Means Committee.
Retroactive Fix
Should FULL House or FAIR Bet clear Congress and be signed by President Donald Trump, the restoration of the gambling losses deduction to 100% would be retroactive, meaning the IRS tax code for the 2026 tax year would include the full deduction.
“The FULL House Act is about basic fairness in the tax code,” said Miller. “Americans should not be taxed on money they didn’t actually take home. By restoring the full deduction for gambling losses, this bill ensures the IRS treats taxpayers honestly and consistently.”
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