Bipartisan momentum is building to reverse the gambling tax changes included in the One Big Beautiful Bill Act, with lawmakers introducing new legislation aimed at restoring a 100% deduction on losses for gamblers.
FULL HOUSE Act Introduced
Rep. Steven Horsford (D-NV) and Rep. Max Miller (R-OH) filed HR 6985, the FULL HOUSE Act (Facilitating Useful Loss Limitations to Help Our Unique Service Economy). Horsford emphasized that taxing gamblers on money they never actually earned is “fundamentally unfair” and could harm Nevada’s tourism-driven economy.
“The elimination of the full deduction is a mistake that Congress must correct,” Horsford said.
Miller added, “Americans should not be taxed on money they didn’t actually take home. Restoring the full deduction ensures fairness and consistency in the tax code.”
The Issue at Hand
Under the current law, gamblers can deduct only 90% of their losses, creating so-called “phantom taxes,” where players could owe money to the IRS despite finishing the year at a net loss. Lawmakers argue this disproportionately impacts high-stakes poker players, casino patrons, and the broader gaming industry.
Broader Support and Industry Concerns
Rep. Dina Titus (D-NV) has also championed the FAIR BET Act, which similarly seeks to reinstate the full deduction. Both measures are gaining cross-party support amid growing concern from players and casino executives.
Poker legend Erik Seidel recently cited the tax change as a factor in potentially scaling back his career, highlighting the law’s real-world impact on professionals. Meanwhile, studies indicate that the 90% cap could reduce annual sports betting handle by $18 billion, a significant hit to the industry.
With multiple bills now moving through Congress, the gaming community is closely watching to see whether lawmakers will restore the full gambling loss deduction and remove what many consider an unfair financial burden on bettors nationwide.
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