US gamblers face tax bill even when they break even
A tax rule change cut the gambling loss deduction to 90%, taxing gamblers on winnings they never kept.
The hit
A US House committee has backed a fix to a tax rule that can leave gamblers owing tax even when their winnings & losses cancel out, according to GamblingNews. The House Ways & Means Committee voted 38-5 to approve a package restoring the full gambling loss deduction, with no date set for a full House or Senate vote. Nevada Rep. Steven Horsford is among those pushing the fix.
Why it matters
From the 2026 tax year, gamblers can only deduct 90% of losses against winnings, meaning a bettor who wins & loses $10,000 each still owes tax on $1,000 of income. The American Gaming Association warns this could push players to stop wanting to participate in legal gambling, hitting businesses linked to the industry.
The record
| Rule change origin | One Big Beautiful Bill, signed by President Trump in July 2025 |
|---|---|
| Committee vote | House Ways & Means Committee, September 16 |
| Bills proposed | FULL HOUSE Act (Rep. Steven Horsford & Rep. Max Miller) & FAIR BET Act (Rep. Dina Titus, July 2025) |
| Backers | More than two dozen lawmakers from both parties, according to GamblingNews |
What happens next
The tax package still needs approval from the full House & Senate before it can reach the president’s desk.
Sources: Another Push: Nevada Wants to Restore Full Gambling Loss Tax Deduction
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