Bipartisan efforts to rescind the gambling tax provisions of the One Big Beautiful Bill Act continued this week with the introduction of another bill to restore the 100% deduction on losses.
Rep. Steven Horsford, D-NV, and Rep. Max Miller, R-OH, filed HR 6985, known as the FULL HOUSE Act (Facilitating Useful Loss Limitations to Help Our Unique Service Economy). Horsford said eliminating the tax provision is critical for the casino and gaming industry.
“Taxing people on money they never actually earned is fundamentally unfair and harmful to Nevada’s economy,” Horsford said. “This policy would drive tourism across our state elsewhere. There is strong bipartisan agreement that this provision was a mistake, and Congress must act to correct it.”
Return To Fairness
The Big Beautiful Bill included a provision that allows gamblers to deduct only 90% of their losses. That could create “phantom taxes,” in which a gambler could end up paying taxes despite having a losing year. Miller stressed the importance of reversing that aspect of the law, which went into effect on Jan. 1.
“The FULL HOUSE Act is about basic fairness in the tax code,” Miller said. “Americans should not be taxed on money they didn’t actually take home. By restoring the full deduction for gambling losses, this bill ensures the IRS treats taxpayers honestly and consistently. I’m proud to lead this bipartisan effort with Congressman Horsford, and I urge my colleagues to support this commonsense fix.”
Rep. Dina Titus (D-NV) has also filed the FAIR BET Act (Fair Accounting for Income from Betting Earnings and Taxation) in the House to restore the 100% deduction. That plan recently gained a key Republican supporter.
The movement on the issue comes after months of discussion among poker players, legislators, and those in the casino industry. In December, Poker Hall of Famer and 10-time World Series of Poker bracelet winner Erik Seidel announced that the provision may put him into semi-retirement.
The same month, several casino executives met with House Ways and Means Committee Chair Rep. Jason Smith, R-MO, to share their concerns about the tax change. One study recently reported that the tax change will cause an $18 billion hit to annual sports betting handle.
