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OAKLAND PARK, Fla (Gambling911.com) - Democrat Dina Titus, representing the First District of Nevada in the U.S. House of Representatives, celebrated the first step for getting her bipartisan Digital Asset Tax Certainty Act passed out of committee this week.
Her efforts have been applauded by the gambling community.
That piece of legislation is designed to overhaul how cryptocurrency, stablecoins, mining, staking and other digital assets are treated for federal tax purposes. It was introduced September 14 and, importantly, passed the House Ways and Means Committee on Wednesday September 16, by a 38–5 vote. It now advances toward consideration by the full House.
The version approved by Ways and Means incorporates a provision to restore the ability of gamblers to deduct 100% of their gambling losses against gambling winnings. The committee explicitly says the change is intended to prevent gamblers from being taxed on “phantom income.”
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 President Donald 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.
There's one not so small problem that Titus has little control over.
House Speaker Mike Johnson sent the House of Representatives home early on Wednesday, canceling Thursday votes and starting a seven-week recess ahead of the midterm elections.
What a dream job, huh?
But there are just 15 weeks left in this calendar year. That means only eight weeks to get this measure passed and signed by the president. Don't forget to subtract the final two weeks of 2026 as this is the Christmas and New Year holiday. If you think congress is sticking around to push through legislation during this time frame, you're sadly mistaken.
The next steps to get this bill passed 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 the president must sign off. Congress does not have a reputation for working fast.
The odds just aren't good.
If the legislation fails to pass by year's end, the process needs to start anew.
The good news for gamblers is that Titus is up for reelection this year, and she's already secured the Democratic nomination for Nevada's 1st Congressional District. The general election is November 3, 2026. All indications point to the congresswoman making this initiative a top priority in 2027.
Titus won reelection in 2024 by roughly 7.5–8 percentage points, but forecasters aren't all treating 2026 identically. As of late August, Cook Political Report, DDHQ/The Hill and Sabato's Crystal Ball rated it Likely Democratic, while Inside Elections had it Lean Democratic.
Regardless, it's almost a certainty gamblers will be unable to claim 100 percent of their gambling losses on their 2026 tax filings.
- Chris Costigan, Gambling911.com Publisher
