Lawmakers Renew Push to Restore Full Gambling Loss Deductions
Lawmakers are attempting to restore full gambling loss deductions after a recent tax code change capped them at 90% of winnings.Summary
Congress is once again considering reversing a recent tax code change that limits the amount of gambling losses that can be deducted. Representative Dina Titus has reintroduced the FAIR BET Act, aiming to overturn a provision enacted late last year that caps deductible losses at 90% of winnings. This change, part of President Trump’s tax bill, departs from decades of policy allowing dollar-for-dollar deductions, potentially taxing gamblers on income they don't retain.
The effort has garnered bipartisan support, with Representatives Horsford and Miller introducing a separate bill for the same purpose. Industry stakeholders, including professional gamblers, casinos, and sportsbooks, warn that the cap could harm the sector, driving players away and complicating finances. They argue that similar limits aren't applied to other high-risk financial activities.
Titus is attempting to attach the fix to a crucial appropriations bill, offering a potential path to resolution, though the amendment's survival isn't guaranteed. The debate's renewed momentum signals a pivotal moment for the future of the US gambling industry.
(Source：Gamblingnews)