In Congress, a bipartisan initiative is making moves to revive a critical federal tax provision that permits gamblers to fully deduct their losses from their winnings. The bill, known as the Facilitating Useful Loss Limitations to Support Our Unique Service Economy (FULL HOUSE) Act, was proposed by Representatives Steven Horsford of Nevada and Max Miller of Ohio. This response comes amid recent controversial adjustments to the tax code that have sparked backlash from both the gaming industry and lawmakers.
The FULL HOUSE Act specifically addresses a particular element within the GOP’s tax reform legislation, informally dubbed the “Big Beautiful Bill.” This component modified how gambling losses are treated under the Internal Revenue Code, decreasing the deductible amount from 100% to 90% of losses. Critics argue that this change imposes tax burdens on gamblers even when their net income is zero.
Currently, individuals are allowed to deduct only 90% of their gambling losses, leading to situations where they incur taxes on income they haven’t actually earned. The FULL HOUSE Act aims to restore the previous framework, which enabled full deduction of losses from gambling, limited solely by the amount of winnings.
“Taxing individuals on money they have not truly earned is fundamentally unjust and detrimental to Nevada’s economy,” stated Representative Horsford. “This policy risks diverting tourism from our state. There exists a strong bipartisan consensus that this provision was misguided, and Congress must act to rectify it.”
Representative Miller underscored the necessity of fairness in the tax system. “The FULL HOUSE Act embodies basic justice within the tax framework,” he articulated.
“Americans should not have to pay taxes on income they never received,” Miller continued. “By reinstating the full deduction for gambling losses, this legislation guarantees that the IRS treats taxpayers with honesty and consistency. I am honored to spearhead this bipartisan initiative with Congressman Horsford, and I encourage my colleagues to back this sensible solution.”
Formally introduced as H.R. 6985 on January 8, 2026, the bill has been referred to committee. If approved, these modifications would affect taxable years that commence after December 31, 2025.
The proposed adjustment aims to restore Section 165(d) of the Internal Revenue Code to its former version, which permits losses from gambling transactions to be deducted up to the extent of gains from such transactions, including any other deductions incurred during gambling.
Nevada legislators have expressed concerns that the current deduction limitation could discourage significant gaming events and hamper tourism-driven income. This is a pressing worry for a state that heavily depends on its hospitality and gaming sectors.
The FULL HOUSE Act builds upon a previous attempt by Representative Dina Titus to tackle the issue through her Fair Bet Act, which did not progress in Congress after facing obstruction from the Rules Committee.
This legislative effort coincides with indications of persistent weakness in Nevada’s tourism sector. Data from the Las Vegas Convention and Visitors Authority reveals that in November 2025, visitor numbers dropped by 5.2 percent compared to the prior year, totaling 3.1 million. At Harry Reid International Airport, passenger numbers similarly decreased by 9.6 percent year-on-year to 4.3 million in November, following an 8.2 percent decline in October.
Such trends have emerged despite the return of major events like the Formula 1 Las Vegas Grand Prix. The latest event took place during the longest federal government shutdown in U.S. history, which caused air travel disruptions due to staffing shortages among unpaid air traffic controllers. However, officials noted that the declining trend in visitor numbers began well before the shutdown.
Other contributing factors include inflation-driven rising costs, affecting discretionary spending on travel and leisure. Additionally, trade tensions during the Trump administration and stricter immigration policies have discouraged international travel to the United States.