100 Percent Tax Deduction for Gambling Losses Bill Passes Out of Committee

Submitted by Gilbert Horowitz on

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Gilbert Horowitz

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100 Percent Tax Deduction for Gambling Losses Bill Passes Out of Committee

OAKLAND PARK, Fla. (Gambling911.com) - Democrat Dina Titus, who represents the First District of Nevada in the U.S. House of Representatives, on Wednesday announced great news for gamblers.

Play poker, casino games and bet sports with one account 

"Finally, after 14 months of uncertainty, my fix to restore the 100% tax deduction for gambling losses has been passed out of committee," she posted via her X account. 

"I was the first Member of Congress to recognize this injustice when I introduced my provision to correct it on July 7, 2025. Since then, I have amplified this issue nationally and brought it to the attention of my colleagues, including members of @WaysandMeansGOP.

"Now it is time for us to push this commonsense solution to the House floor, to the Senate, and finally to the President’s desk. I won’t stop fighting until we get this over the finish line."

The House Ways and Means Committee approved the Digital Asset Tax Certainty Act containing the provision restoring the gambling-loss deduction to 100%. Titus is now urging House leadership to bring it to the floor.

The Big Beautiful Bill was a sweeping U.S. federal statute, passed in 2025 by the 119th Congress as H.R. 1 and signed into law by Trump. Spanning more than 900 pages, the bill contained a slew of provisions changing federal programs and the tax code, many of which lawmakers admit they are only now beginning to fully digest.

The gambling world quickly learned they, too, would be impacted.

Under the new law, starting for tax years beginning January 1, 2026, gamblers can no longer deduct 100% of their gambling losses. Instead, losses are capped at 90% of actual losses when offsetting winnings.

Even if a gambler were to break even, the new law now requires these individuals to report taxable income.

All of this will go into effect with the next tax filing period.

Sports bettor Ben Rapsis illustrated the problem posed currently:

"I make 50k a year, have gambled with the same 20k back and forth for over 500k worth of bets. 528k lost, 523k won.  Only had up to 30k at most the whole time.  I would owe tax on 50k phantom income when I've already lost 5k on money I already paid tax on this is criminal." 

This one still has a long ways to go before it can become law, and the clock is not on the side of gamblers.

The next steps include the House floor consideration followed by a House debate, the Senate consideration, coming up with identical text between the two chambers, passage in both the House and Senate, and finally US President Donald Trump signing off on the legislation. 

Easier said than done, even with the bipartisan support.  All of this must occur by January 1, 2027. 


  • Gilbert Horowitz, Gambling911.com 

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