House Ways and Means Committee Advances Measure to Block 90 Percent Gambling Loss Deduction Cap

The House Ways and Means Committee approved a provision to restore the full federal tax deduction on gambling losses. The fix was attached to H.R. 10357, the Digital Asset Tax Certainty Act. Rep. Dina Titus (D-Nev.) now seeks a floor vote before the end of the year.

Titus, who has led the effort since introducing the bipartisan FAIR BET Act on July 7, 2025, said the timing now matters. “After 14 months of fighting to get this commonsense, bipartisan fix through committee, we must now encourage the House to approve this measure before Jan. 1, 2027,” Titus said. “This would stop the reduction to 90 percent from taking effect and ensure gamblers across the nation do not pay this tax on phantom money they never won.”

Origins of the 90 Percent Cap

The reduced deduction originated in the One Big Beautiful Bill signed by President Donald Trump on July 4, 2025. That legislation cut the allowable gambling loss deduction from 100 percent to 90 percent. Titus was the first member of Congress to object and has pursued a legislative correction since.

She first raised the issue at a Ways and Means Committee field hearing in Las Vegas in July 2025. Titus followed with letters urging inclusion in a broader package. No movement occurred until this week’s vote, which coincides with the House preparing to leave session until after the election. An earlier attempt to fix the deduction failed in January, when the House Rules Committee declined to advance an amendment to an appropriations bill carrying the change. That effort was one of nearly 70 amendments introduced at the time.

The Deadline Pressure

The FAIR BET Act, formally H.R. 4304, carries 25 co-sponsors. Backers include the American Gaming Association, MGM Resorts International, Caesars Entertainment, Wynn Resorts Ltd., DraftKings, FanDuel, the Nevada Resort Association and the National Thoroughbred Racing Association. On the Senate side, Nevada Democrats Catherine Cortez Masto and Jackie Rosen co-sponsored the companion FULL HOUSE Act with Sen. Ted Cruz (R-Texas).

According to reporting by Yogonet International, House passage would not end the matter. The Senate must approve its version and President Trump must sign any final legislation before the 90 percent cap takes effect on Jan. 1, 2027. Titus called on Republican House leadership to bring the provision to the floor and for the Senate to act expeditiously.

The limited window before the House recesses adds urgency. Success depends on whether leadership treats the measure as a priority in the remaining session.

Reporting: Yogonet International

Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.