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OAKLAND PARK, Fla (Gambling911.com) - Democrat Dina Titus, who represents the First District of Nevada in the U.S. House of Representatives, confirmed on Monday that her gambling loss tax deduction fix has finally been included in a tax package.
"Very pleased to see that my gambling loss tax deduction fix has finally been included in a tax package. I encourage my colleagues to push it through @WaysandMeansGOP this week as quickly as possible."
The Big Beautiful Bill was a sweeping U.S. federal statute, passed in 2025 by the 119th Congress as H.R. 1 and signed into law by Trump. Spanning more than 900 pages, the bill contained a slew of provisions changing federal programs and the tax code, many of which lawmakers admit they are only now beginning to fully digest.
The gambling world quickly learned they, too, would be impacted.
Under the new law, starting for tax years beginning January 1, 2026, gamblers can no longer deduct 100% of their gambling losses. Instead, losses are capped at 90% of actual losses when offsetting winnings.
Even if a gambler were to break even, the new law now requires these individuals to report taxable income.
All of this will go into effect with the next tax filing period.
Sports bettor Ben Rapsis illustrated the problem posed currently:
"I make 50k a year, have gambled with the same 20k back and forth for over 500k worth of bets. 528k lost, 523k won. Only had up to 30k at most the whole time. I would owe tax on 50k phantom income when I've already lost 5k on money I already paid tax on this is criminal."
- Gilbert Horowitz, Gambling911.com
