U.S. Congress Closer to Reinstating 100% Gambling Tax Deduction

Grant Mitchell
By: Grant Mitchell
Industry
Congress Considering Repealing 90% Gambling Tax Deduction

Photo by Rawpixel.com, PDM

Key Takeaways

  • The 100% rate was changed to 90% by the One Big Beautiful Bill
  • The 90% standard meant that gamblers could owe more money in taxes than they won
  • Lawmakers will consider the change as part of a larger legislative package

Casino gamblers and sports bettors across America are close to having more money in their pockets.

The 90% gambling loss tax deduction standard, part of President Donald Trump’s One Big Beautiful Bill, is closer to being repealed and replaced with the previous 100% amount. This would mean that individuals could no longer pay more money in taxes than they won, as was possible under Trump’s setup.

The increasing chance was spurred by the House Ways and Means Committee including a provision in a package that is set for a review this week.

Congress considers 100% gambling tax deduction

The Ways and Means Committee is the longest-standing Committee in the U.S. Congress. It is also scheduled to meet on Wednesday, where it will review House Resolution 10357 — known as the Digital Asset Tax Certainty Act — which includes the 100% tax deduction proposal.

According to the 98-page submission, all tax years beginning after Dec. 31, 2025, would be eligible for the full 100% deduction on gambling losses. 

“The proposal eliminates the 90% limitation on the deduction for losses from wagering transactions,” the act reads. “Accordingly, for taxable years beginning after December 31, 2025, losses sustained during the taxable year on wagering transactions are allowed as a deduction to the full extent of the gains during the taxable year from such transactions.”

Notably, the bill would include a retroactive repeal of the 90% standard for the 2026 tax year, meaning that gamblers could potentially save money leading up to the next federal tax day on April 15, 2027.

The change in deduction standard comes from the FULL HOUSE Act (Facilitating Useful Loss Limitations to Help Our Unique Service Economy), introduced by Rep. Max Miller (R-OH) in January.

Back to old ways

Gamblers are not out of the woodwork just yet. The package must be approved in full, or the deduction provision must be assigned to another package and approved if it isn’t greenlit on its own. It must also pass the Senate to become law.

One of FULL HOUSE Act’s co-sponsors, Rep. Steven Horsford (D-NV), celebrated the provision’s inclusion in the Digital Asset Tax Certainty Act.

“People should not pay taxes on money they never earned. That’s why I introduced the bipartisan FULL HOUSE Act and have worked for months to secure a full repeal of the unfair gambling tax that Senate Republicans enacted last year,” Horsford said. “For Nevada, this is about protecting our economy and the workers and small businesses who depend on tourism and gaming. Their livelihoods are at stake.”

Steven Horsford, official portrait, 116th Congress — PICRYL - Public Domain  Media Search Engine
Rep. Steven Horsford (D-NV)

Rep. Dina Titus (D-NV), who presented a similar proposal and is a known supporter of pro-gambling measures, said the Ways and Means Committee made the correct decision to include the new amount.

“Very pleased to see that my gambling loss tax deduction fix has finally been included in a tax package,” she said. “I encourage my Ways and Means colleagues to push it through this week as quickly as possible.”

In a crossover between the gambling and prediction industries, Kalshi — the leading operator of prediction markets — approved contract trading related to the future of America’s gambling tax deduction. According to real-time market probabilities, there is a 35% chance the 90% standard is repealed before 2027, a 48% chance before April 1, 2027, and a 63% chance before Sept. 1, 2027.

Grant is an industry news expert who covers legislative news, financial updates, and general industry trends. As a veteran of the gambling industry, Grant has experience in the world of casinos, sports betting, and iGaming. As a former long-distance runner, he knows a thing or two about persistence and consistently holding himself to a high standard.

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