House Ways and Means Committee Approves Measure to Restore Full Deduction for Gambling Losses

The House Ways and Means Committee approved legislation this week to restore the full deduction for gambling losses. The action advances bills backed by Nevada representatives that reverse a change enacted in the One Big Beautiful Bill. As reported by World Casino News, the committee vote sends the proposal to the full House before a revised rule takes effect on January 1, 2027.

That 2025 law reduced the allowable deduction from 100 percent to 90 percent. The adjustment can produce taxable income even when winnings and losses are equal. A gambler with $100,000 in winnings and $100,000 in losses could owe taxes on $10,000 under the new limit. The same math applies to a $10,000 break-even scenario that would generate tax on $1,000.

Nevada Delegation Drives Repeal Effort

Rep. Dina Titus and Rep. Steven Horsford led the push. Titus sponsored the FAIR BET Act after 14 months of advocacy that included a July 2025 field hearing in Las Vegas and follow-up letters to the committee. The measure passed the committee by a vote of 38 to 5 after Horsford incorporated his FULL HOUSE Act into a wider tax package.

Titus stated that the House must act before January 1, 2027 to stop the 90 percent reduction. Horsford said the provision threatens jobs tied to gaming and tourism. “At a time of economic uncertainty, my job is to protect Nevadans and their jobs,” Horsford said. He added that the tax places livelihoods at risk for dealers, housekeepers, restaurant workers, and small business owners.

Industry Support and Legislative Obstacles

Major operators and associations endorsed the restoration. MGM Resorts International, Caesars Entertainment, Wynn Resorts, the Nevada Resort Association, the American Gaming Association, DraftKings, FanDuel, and the National Thoroughbred Racing Association back the legislation, which has 25 co-sponsors. Craig Billings, chief executive officer of Wynn Resorts, called the committee action a critically important step toward protecting the workforce and restoring fairness to the tax code. Bill Miller, president and CEO of the American Gaming Association, urged passage of the FULL HOUSE Act to ensure consumers choose the legal market and avoid taxes on phantom income.

The bill requires full House approval, Senate passage, and the president’s signature. Nevada Senators Catherine Cortez Masto and Jackie Rosen have co-sponsored companion legislation with Sen. Ted Cruz. Titus noted the compressed timeline with Congress out of session until after the election. Swift action is required to prevent the tax change from taking effect and harming gamblers nationwide.

The Road to Enactment

Passage would eliminate a policy that imposes tax liability without net gain. Operators and state economies tied to legal gaming stand to benefit if the timeline holds. Failure to complete the process before the January 2027 deadline would lock in the 90 percent limit and its documented distortions.

Reporting: World Casino News

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