Efforts to restore the gambling loss deduction to 100% suffered a setback this week in Washington D.C., leaving advocates scrambling for a new strategy to undo changes enacted under the Trump-era One Big Beautiful Bill.
The latest push involved an amendment to an appropriations bill (H.R. 7148) considered by the House Rules Committee. Despite gaining attention, the amendment was not adopted when the committee adjourned Thursday morning, leaving supporters without a legislative win.
Lawmakers Call for Fairness
During committee testimony, Rep. Dina Titus (D-NV) argued that the current 10% limitation unfairly taxes players on losses they never recouped.
“Under the new rule, if someone wins $100,000 but also loses $100,000 in the same year, their net is zero,” Titus explained. “Yet the tax code still treats them as if they earned 10% they never saw.”
She framed the measure as a matter of fairness, noting that the tax code previously allowed players to deduct 100% of gambling losses against winnings, a policy she called “common sense.”
“People should only pay taxes on money they actually earned — not on phantom or ghost money,” Titus said.
Bipartisan support appears to be growing. Titus highlighted that 25 other lawmakers, including Rep. Max Miller (R-OH), back the restoration of the full deduction. Miller emphasized that Americans should not be taxed on money they never took home and has previously proposed legislation mirroring the Senate’s FULL HOUSE Act, which also seeks a 100% deduction.
Roadblocks Remain
Despite arguments framed around fairness and “common sense,” obstacles remain. Rep. Jim McGovern (D-MA) joked about the simplicity of the amendment, noting that in the House Rules Committee, “common sense” often doesn’t make it into law.
Only two of over 80 proposed amendments made it into the appropriations bill, and the gambling deduction amendment was not one of them. Opposition remains strong, particularly from Sen. James Lankford (R-OK), who opposes restoring the 100% deduction.
Lawmakers will need to rebuild momentum, likely in committees like Ways and Means, to secure a future vote. Until then, the 10% deduction stays in effect, leaving poker and other gambling players still facing limited relief.
