Bipartisan Lawmakers Push to Restore Full Gambling Loss Deductions
Bipartisan lawmakers are working to reinstate full deductibility of gambling losses after a 2018 tax law change capped deductions at 90% of winnings.Summary
A bipartisan group of US lawmakers is pushing to restore the full deductibility of gambling losses, a right curtailed by a provision in the 2018 tax law. This provision, part of President Trump’s “One Big Beautiful Bill Act,” limits the deduction of gambling losses to 90% of winnings, a significant departure from previous practice where losses could be fully deducted against gains. Representatives Steven Horsford and Max Miller have introduced HR 6985 to retroactively reinstate the full deduction, starting with the 2026 tax year, arguing it’s unfair to tax individuals on money they haven’t actually won.
The gambling industry strongly supports this effort, warning that the current rule discourages players, potentially driving them to unregulated markets, and complicates bookkeeping. Casino operators and online sportsbooks argue that the change is detrimental to their businesses and the broader economy, particularly in states reliant on tourism. Supporters point out that other volatile investment activities don't face similar restrictions.
Despite growing bipartisan support and industry advocacy, resistance remains. Some lawmakers view the change as minor, while fiscal conservatives express concerns about the budgetary impact of reversing it. Efforts to advance similar legislation, like the FAIR Bet Act, have stalled in the Senate, indicating a challenging path forward.
(Source：Gamblingnews)