The House Ways and Means Committee will consider legislation on Wednesday to restore full federal tax deduction for gambling losses. Current rules allow players to deduct only 90% of losses against winnings — the amendment would return the 100% deduction retroactively from January 1, 2026.
The provision is part of HR 10357, the 98-page Digital Asset Tax Certainty Act. It draws on the bipartisan FULL HOUSE Act introduced in January by congressman Max Miller (R-Ohio), co-sponsored by four Democrats and two Republicans including Nevada representatives Steven Horsford and Susie Lee.
'People should not pay taxes on money they did not earn. That is why I introduced the bipartisan FULL HOUSE Act and have spent months fighting to fully repeal the unfair gambling tax that Senate Republicans imposed last year,' Horsford said. For Nevada the issue is about protecting the economy, tourism and small businesses that depend on the industry.
Congresswoman Dina Titus, who had pushed a similar FAIR BET Act, backed the initiative and urged committee colleagues to advance the amendment this week.
Prediction markets have seen over $3.1 million in contracts wagered on the repeal of the 90% cap. Traders put the probability of repeal by April 1, 2027 at 48%.
The bill text states that wagering losses for a tax year are fully deductible within the limits of winnings for the same period — for taxable years beginning after December 31, 2025.
