The likelihood of gamblers being able to deduct 100% of their gambling losses from their winnings has decreased this week with a proposal to remove the One Big Beautiful Bill tax provision included in a legislative package under review by the House Ways and Means Committee.
The Ways and Means Committee, the oldest US Congress committee, is meeting this week on Capitol Hill to discuss legislation related to digital assets, healthcare, and tax policy. The revival of the gambling deduction has been added to House Resolution 10357, known as the Digital Asset Tax Certainty Act.
Highlighted on page 95 of the 98-page legislative package, the bill proposes the reinstatement of regulations for wagering losses.
“The proposal removes the 90% limit on the deduction for losses from wagering transactions,” as stated in the text. “As a result, for taxable years starting after December 31, 2025, losses incurred during the year on wagering transactions can be deducted to the full extent of the gains from such transactions.”
The plan aims to restore the deduction for gambling losses to 100% against winnings and retroactively apply the tax rule to 2026. The Ways and Means Committee will review the bills this Wednesday (September 16).
Nevada Politicians Recognized
The initiative to reinstate the gambling losses deduction by the Ways and Means Committee stems from the FULL HOUSE Act (Facilitating Useful Loss Limitations to Help Our Unique Service Economy) introduced by Representative Max Miller (R-OH) earlier this year. The bill, supported by four Democrats and two Republicans, including Nevada Democrats Steven Horsford and Susie Lee, made its way into the Digital Asset Tax Certainty Act.
Horsford expressed his satisfaction with the inclusion of the bill in the Digital Asset Tax Certainty Act.
People should not pay taxes on money they never earned. That’s why I introduced the bipartisan FULL HOUSE Act and have worked for months to secure a full repeal of the unfair gambling tax that Senate Republicans enacted last year,” stated Horsford.
“For Nevada, this is about safeguarding our economy and the workers and small businesses reliant on tourism and gaming. Their livelihoods are on the line,” remarked the congressman.
Congresswoman Dina Titus, the author of the FAIR BET Act (Fair Accounting for Income Realized from Betting Earnings Taxation), also supported the Ways and Means Committee’s incorporation of the revised gambling deduction.
Very pleased to see that my gambling loss tax deduction fix has finally been included in a tax package,” affirmed Titus. “I encourage my Ways and Means colleagues to push it through this week as quickly as possible.”
Chances of Deduction Reinstated
Prediction markets are offering contracts for traders to predict the restoration of the deduction for gambling losses to 100%. With over $3.1 million in trades, traders suggest a 48% likelihood of the repeal by April 1, 2027.