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US House committee advances bill changing gambling expense deductions

Regulation

The US House Ways and Means Committee advanced a federal tax bill this week, according to the report. The proposal would limit gambling-related expense deductions to reported winnings and restore the threshold for third-party payment forms to $20,000 and more than 200 transactions.

If enacted, the proposal could change professional gamblers’ deductible costs and payment reporting requirements.

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Regulation

Washington gambler sues Kalshi over alleged $308,781.62 losses

Scott Bright filed a lawsuit against Kalshi in King County Superior Court, alleging the platform violated Washington's online gambling ban. His complaint says he lost $308,781.62 between 17 June and 14 August 2026; Kalshi has sought dismissal and argues its event contracts are regulated under federal law and that counterparties, not the company, received his losses.

Scott Bright has sued Kalshi in Washington, alleging that its prediction market violated the state's online gambling ban. Kalshi has sought to dismiss the case.

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