Representatives Steven Horsford and Max Miller introduced HR 6985 to reverse the US tax code’s 90% cap on gambling-loss deductions. The proposed change would apply retroactively from the 2026 tax year; the Senate Finance Committee has not advanced similar efforts, according to the report.
The proposal could change operators’ customers’ tax treatment and influence their participation in regulated betting markets.
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Oklahoma Senator James Lankford has opposed legislation to restore full deductions for gambling losses in the US, according to reports of his comments. Current rules allow taxpayers who itemise to deduct 90% of losses, while bills from Representatives Dina Titus and Andy Barr seek to reinstate a 100% deduction.
US Representative Dina Titus has asked House leadership to restore the full gambling-loss tax deduction in end-of-year legislation, according to the report. The deduction was reduced from 100% to 90%, and her FAIR BET Act passed the House Ways and Means Committee 38-5 in September; it awaits action by House leadership.
A congresswoman from Nevada, whose district covers the Las Vegas Strip, wants Republican leaders in the House to bring back the full gambling-loss deduction as the session's final weeks near. Democratic U.S. Rep. Dina Titus wrote to Speaker Mike Johnson and Majority Leader Steve Scalise, both of Louisiana, urging that FAIR BET language be added to any “must-pass” legislation.
US Representative Dina Titus is urging the House Ways and Means Committee to advance the FAIR BET Act, which would restore a 100% federal deduction for gambling losses. The current rate is 90%, and the committee has not yet acted on the bill, according to the report.
The US House Rules Committee declined to advance the FAIR BET Act as an amendment to the 2026 National Defense Authorization Act, preventing a House floor vote, according to the report. The existing rule will limit deductible gambling losses to 90% from the 2026 tax year unless Congress acts. The bill’s future now rests with the House Ways and Means Committee or later tax legislation.
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.