US House Panel Considers Restoring Full Gambling Loss Deduction
United States.- 17 September 2026 | www.zonadeazar.com The US House Ways and Means Committee is considering legislation that would restore the federal tax deduction for gambling losses to 100% of gambling winnings.
The proposal would remove the current 90% limitation and, if enacted in its present form, would apply retroactively to the 2026 tax year.
Current Tax Treatment
For decades, taxpayers were able to deduct documented gambling losses up to the full amount of their gambling winnings.
Tax legislation enacted in 2025 changed that treatment by limiting deductible wagering losses to 90% from 2026.
How the 90% Limit Works
The rule can result in taxable income even when a gambler has no overall net profit.
For example, a taxpayer reporting $100,000 in gambling winnings and $100,000 in losses can currently deduct only $90,000.
That leaves $10,000 of taxable gambling income despite the bettor breaking even overall.
Provision Added to H.R. 10357
The proposed restoration has been added to H.R. 10357, the Digital Asset Tax Certainty Act.
The gambling provision sits within a 98-page legislative package being considered by the Ways and Means Committee alongside measures covering digital assets, healthcare and wider tax policy.
Based on the FULL HOUSE Act
The language is based on the Facilitating Useful Loss Limitations to Help Our Unique Service Economy Act, known as the FULL HOUSE Act.
The bipartisan proposal was introduced in January by Republican Representative Max Miller of Ohio.
Bipartisan Support
The legislation has attracted support from members of both parties.
Nevada Democrats Steven Horsford and Susie Lee are among its co-sponsors.
The issue is particularly significant in Nevada because of the role of casinos, tourism and hospitality in the state’s economy.
Steven Horsford’s Position
Horsford has argued that taxpayers should not face tax liabilities on money they did not ultimately earn.
He has also linked the issue to the potential impact on Nevada workers, small businesses and the state’s tourism economy.
These are arguments advanced by lawmakers supporting restoration of the full deduction.
Dina Titus Backs the Change
Nevada Democratic Representative Dina Titus has pursued similar legislation through her FAIR BET Act.
Titus welcomed the inclusion of a gambling-loss deduction provision in a tax package now receiving committee consideration.
Retroactive Application to 2026
The legislative language would apply to taxable years beginning after 31 December 2025.
If enacted without changes, taxpayers would therefore regain the full deduction for the 2026 tax year.
What the Proposal Would Allow
The provision would permit losses from wagering transactions to be deducted up to the full amount of gains from those transactions.
Losses would remain capped at gambling winnings, meaning the proposal would not allow excess wagering losses to offset unrelated forms of income.
Recreational and Professional Gamblers
The change is relevant to both recreational bettors and higher-volume or professional players.
Its effect can be particularly significant for customers generating substantial gross wins and losses while finishing the year with only a small net profit or no profit at all.
Implications for the Regulated Gaming Industry
The issue also has implications for casinos, sportsbooks, poker, pari-mutuel wagering and other forms of regulated gambling.
Gaming-industry representatives have argued that taxation disconnected from actual net gambling profit could influence player behaviour and the competitiveness of legal operators.
Previous Legislative Attempts
Congress has already considered several attempts to restore the former tax treatment.
Titus’ FAIR BET Act did not advance through an earlier amendment process, while the bipartisan FULL HOUSE Act kept the issue alive through separate legislation.
Its inclusion in the latest tax package provides another potential route through Congress.
Industry Context
Gambling taxation has become increasingly relevant as regulated sports betting and other legal gaming verticals have expanded across the United States.
The treatment of losses and winnings affects individual taxpayers while also influencing how high-volume customers evaluate participation in regulated gambling.
The present debate centres on whether federal taxation should once again reflect net gambling gains rather than leaving part of offsetting losses non-deductible.
Next Steps and Impact
The Ways and Means Committee must determine whether the provision remains in the package and whether the legislation advances through subsequent stages of Congress.
If approved in its current form, the maximum loss deduction would return from 90% to 100% of gambling losses, capped at total gambling winnings, effective from the beginning of 2026.
Until legislation is enacted, the existing 90% federal limitation remains in effect.
Editó: @fonta
