Change to Gambling Loss Tax Deduction Moves Forward
Mike Goodpaster Published 22/09/2026
A return of the 100% gambling loss tax deduction is moving forward. It is part of HR 10357, a bill that just passed in the House. The gambling loss tax deduction was reduced from 100% to 90% as part of President Donald Trump's so-called One Big Beautiful Bill, which Congress passed earlier this year. Attempts to pass the Fair Bet Act, which would've restored the 100% gambling loss tax deduction, have failed to gain traction on the House floor.
However, the Fair Bet Act was attached to HR 10357, the Digital Asset Tax Certainty Tax, which was recently passed by the House Ways and Means Committee.
The passage of HR 10357 is good news for gambling participants
The Digital Asset Tax Deduction Bill (HR 10357) was passed. It received bipartisan support by the House Ways and Means Committee by a resounding 38-5 margin. The bill now heads to the House floor for a full vote.
On the surface this bill is specifically dealing with cryptocurrency. However, attached as a rider to HR 10357 is the Fair Bet Act.
This bill was introduced by Nevada Rep. Dana Ttius. She has been fighting to return the gambling tax deduction to 100% ever since the One Big Beautiful Bill Act (OBBBA) was enacted in July.
She first tried to do so as a standalone bill in July. That bid failed. Then Titus sought to get the Fair Bet Act through as a rider on the National Defense Bill. Again, her attempt was rejected.
Titus celebrates finally getting a win
Consider it third-time lucky for Titus. She rolled the dice that this time, her bill would move ahead, and it did.
“I am disappointed it took the House committee so long to take action,” Congresswoman Titus said in a press release. “I spoke at a Ways and Means Committee field hearing in Las Vegas in July 2025 to bring the consequences of reducing the deduction to their attention. Over the next several months, I wrote letters to the committee urging it to include the fix in an upcoming package.
"Nothing happened until now, when the House will be out of session until after the [November midterm] election. The Republican House leadership must bring this provision to the floor, and the Senate must also expeditiously pass it if we are to prevent the tax from taking effect and harming gamblers nationwide.”
The Fair Bet Act put forth by Titus has bipartisan support from 25 co-sponsors. It also has backing from the American Gaming Association, MGM, DraftKings, FanDuel, Caesars, Wynn, the Nevada Resort Association, and the National Thoroughbred Racing Association. In addition, there has been an outpouring of support for the legislation by gamblers on social media.
Why the return of the old gambling tax deduction matters
In the past, all gambling losses were tax-deductible. Suppose you bet $1,000 on an NFL game and lost the bet. You could claim the $1,000 loss on your taxes. However, with the passage of OBBBA, you'd only be able to deduct $900 in losses. You'll be paying taxes on $100 that you didn't earn.
"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.
“Altering the tax code was a ruse in the One, Big, Beautiful Bill at the expense of recreational and professional gamblers. As I have said many times, it must be fixed.”
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