House Ways and Means Committee Advances Bipartisan Package Restoring Full Gambling Loss Deductions via FULL HOUSE Act

The House Ways and Means Committee has advanced a bipartisan tax package that includes the FULL HOUSE Act, restoring the full tax deduction of gambling losses. The measure cleared by a 38-5 margin and now heads to the House floor.

This reverses a provision in President Donald Trump’s One Big Beautiful Bill Act from July 2025. That law capped deductions at 90 per cent, exposing gamblers to taxes on phantom income. A gambler winning $1m and losing $1m could deduct only $900,000 and face taxes on $100,000 never actually earned, according to reporting by Focus Gaming News. Democratic Representative Dina Titus of Nevada first raised concerns that the limit penalised responsible gamblers, harmed casino economies, and could drive players toward unlicensed operators.

Nevada Representatives’ Year-Long Campaign

Representatives Steven Horsford and Dina Titus spent the past year advancing standalone bills to restore the 100 per cent deduction, provided losses do not exceed winnings. Horsford said: “At a time of economic uncertainty, my job is to protect Nevadans and their jobs. From dealers and housekeepers to restaurant workers and small business owners, families across our state depend on visitors choosing Nevada. This unfair tax puts their livelihoods at risk. That’s why I fought to advance my FULL HOUSE Act, and I won’t stop until we get this relief signed into law.”

He added: “No one should pay taxes on money they never earned,” he said. “This is about the workers supporting their families, the small businesses keeping their doors open, and the communities that make Nevada home. I stayed at the table because they deserve results. Today, we moved closer to delivering.” Titus welcomed the committee’s decision.

Path Forward for the FULL HOUSE Act

American Gaming Association President Bill Miller welcomed the step. Miller said: “The American Gaming Association is grateful for this critical step forward in restoring the 100 per cent gambling tax deduction. We encourage Congress to pass the FULL HOUSE Act to ensure that consumers choose the legal market where protections exist and are not taxed on phantom income. Thank you to the Ways and Means Committee as well as Representatives Horsford and Miller for their leadership in advocating for this bipartisan measure. We look forward to working with our partners in Congress to get this passed.”

With House floor consideration ahead, the bill tests whether Congress will align tax treatment with actual net outcomes for legal gaming. Enactment would remove a documented disincentive that stakeholders warn pushes activity outside regulated channels, particularly benefiting Nevada’s casino economy and licensed operators nationwide.

Reporting: Focus Gaming News

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