The House Ways and Means Committee has approved an amendment restoring the full federal tax deduction on gambling losses. The measure was attached to H.R. 10357, the Digital Asset Tax Certainty Act. Rep. Dina Titus of Nevada, who initiated the effort, is now pushing for a floor vote before the end of the year.
The deduction was cut from 1 January 2025 under the One Big Beautiful Bill, signed by President Donald Trump on 4 July 2025, which reduced the gambling loss tax deduction from 100% to 90%. Titus opposed the change immediately and introduced the bipartisan FAIR BET Act (House Resolution 4304) on 7 July 2025. The bill has 25 co-sponsors.
'After 14 months of work, we must secure House approval before 1 January 2027 to prevent the 90% cap from taking effect and spare players from being taxed on money they did not win,' Titus said. She called the tax code change 'a gimmick at the expense of recreational and professional gamblers.'
An earlier attempt to fix the issue failed in January when the Rules Committee rejected an amendment to a budget bill. Titus raised the matter at a Ways and Means field hearing in Las Vegas in July 2025 and sent letters requesting the fix be included in a legislative package, but there was no movement until this week.
The initiative is backed by the American Gaming Association, MGM Resorts International, Caesars Entertainment, Wynn Resorts Ltd., DraftKings, FanDuel, the Nevada Resort Association and the National Thoroughbred Racing Association. In the Senate, Democrats Catherine Cortez Masto and Jackie Rosen of Nevada, along with Republican Ted Cruz of Texas, introduced the companion FULL HOUSE Act.
Even if the House passes the measure, it will require Senate approval and Trump's signature before 1 January 2027, when the 90% cap is due to take effect.
