House Republican leaders did not allow Representative Dina Titus’s amendment to restore the full gambling-loss deduction to receive debate or a vote, she said. The fiscal year 2026 funding bill became law on 3 February without changing the 90% deduction limit, which applies from the 2026 tax year.
The 90% limit remains in place, affecting how bettors can deduct losses against winnings for federal tax purposes.
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A US House committee advanced legislation sponsored by Nevada representative Dina Titus to reverse the gambling-loss tax cap, according to reports. The proposed FAIR BET Act would restore a 100% deduction limit for bettors, and Titus aims to introduce it before the end of 2026.
Reportedly, Nevada lawmakers have renewed efforts to restore the full federal deduction for gambling losses. Representative Steven Horsford called for action over a congressional change that could create tax liabilities for gamblers who break even.
Nevada legislators are making another attempt to bring back the complete federal write-off for gambling losses. That goal has yet to be achieved, even though more than twelve months have passed since Congress made a change that can force some bettors to owe tax despite finishing even. At the Global Gaming Expo in Las Vegas, Democratic Representative Steven Horsford again urged action, backing a bill that would let taxpayers write off all gambling losses against winnings, capped at the amount won.
It was reported that NTRA asked the US Treasury and IRS to support legislation restoring the 100% gambling loss deduction. The racing association argues that the current 90% cap can create tax liabilities even when bettors break even.
Four Nevada representatives—Susie Lee, Steven Horsford, Mark Amodei and Dina Titus—are backing legislation to restore full federal tax deductions for gambling losses, reportedly. Campaign filings cited in the report show gambling-related donations to the lawmakers, while Lee's office said the earlier cap resulted from rushed lawmaking and supported changing it.
Representative Dina Titus renewed efforts in Congress to reverse the US cap on deductible gambling losses during debate over HR 7148, according to the report. Her FAIR BET Act amendment would restore full deductions; separate legislation from Representatives Steven Horsford and Max Miller also seeks that change. The proposed amendment could still be removed during negotiations.