A fresh push to restore the 100% federal deduction for gambling losses hit a procedural wall in the U.S. House after the House Rules Committee declined to allow an amendment that would have reversed a new 90% cap set to take effect in tax year 2026.
The attempted fix was championed by Rep. Dina Titus (D–Nevada), who argued the 90% limit creates a tax fairness problem by generating “phantom income” for people who break even. Under the new rule, a taxpayer who reports $100,000 in winnings and $100,000 in losses would be able to deduct only $90,000, leaving $10,000 exposed to tax despite a net result of zero.
Titus sought to attach the change to the Consolidated Appropriations Act, 2026 (H.R. 7148), but the Rules Committee did not advance the amendment for floor consideration, and the package moved forward without the gambling-loss fix. Supporters describe this as a setback because appropriations vehicles can be one of the fastest paths for technical tax corrections—especially when timing is tight and the new limitation is already scheduled to start in 2026.
The broader legislative fight continues through stand-alone bills. Titus has promoted the FAIR BET Act, introduced in July 2025, which would reinstate full deductibility of losses up to winnings. Separately, Reps. Steven Horsford (D–Nevada) and Max Miller (R–Ohio) introduced H.R. 6985, the FULL HOUSE Act, also aimed at restoring the long-standing 100% rule.
One reason the issue is politically sticky is revenue. Coverage of the 2025 tax change cites estimates that the 90% cap could raise roughly $1.1 billion over 10 years, money lawmakers may be reluctant to give back without offsets.
