Nevada Lawmakers Advance Bill to Reverse 90 Percent Cap on Gambling Loss Deductions
Nevada’s Horsford is renewing the drive to restore 100% gambling loss deductions after the 2025 law capped them at 90%. The House Ways and Means Committee passed the fix 38-5 on September 16, yet full congressional approval lacks a timetable. The change would prevent taxation on break-even activity that affects players and the gaming economy.
SCCG Take — The 90 percent cap creates artificial tax liability on neutral outcomes, risking reduced player activity in 2026. Full restoration would align rules with economic reality and ease pressure on Nevada operators.
Nevada lawmakers are pressing to restore the full federal tax deduction for gambling losses. The effort follows the One Big Beautiful Bill signed by President Donald Trump in July 2025, which set a 90 percent limit on deductions beginning with the 2026 tax year.
A player reporting $10,000 in winnings and an equal sum in losses may now deduct only $9,000. The remaining $1,000 counts as taxable income despite the gambler breaking even.
Democratic Rep. Steven Horsford renewed the call during the Global Gaming Expo in Las Vegas. He described full restoration as a matter of fairness that touches not only players but also the workers and businesses tied to the gaming industry.
“The people who make our state and our communities prosperous, because of their hard work, we’re going to make sure that their voice is at the table,” Horsford said at G2E.
Committee Approval and Pending Congressional Action
The House Ways and Means Committee voted 38-5 on September 16 to advance a broader tax package containing the proposed fix. Horsford introduced the FULL HOUSE Act with Republican Rep. Max Miller of Ohio. Fellow Nevada Democrat Dina Titus introduced the FAIR BET Act in July 2025.
More than two dozen lawmakers from both parties have supported versions of the measure. The legislation still requires approval from the full House and Senate. No timetable has been announced, leaving the 90 percent limit in place for the 2026 tax year.
Industry Warnings on Player Deterrence
The American Gaming Association and major casino operators back the restoration. They warn that taxing amounts players never actually kept could reduce participation in legal gaming and harm connected businesses. Craig Billings, chief executive officer of Wynn Resorts, stated that the committee vote signals progress but that more work remains before the end of the congressional session, according to reporting by GamblingNews.
The gap between committee approval and final enactment creates near-term uncertainty. Without swift action, the reduced deduction will apply to the upcoming tax year and may alter incentives for gamblers and the operators who rely on consistent play.
Reporting: GamblingNews
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
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