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House Rules Panel Blocks Gambling-Loss Deduction Fix as Spending Bill Advances

The decision keeps the 90% loss cap in place, pushing supporters to seek a vote through tax-writing committees.

Overview

  • The House Rules Committee declined to make the FAIR BET amendment in order for H.R.7148, and the House passed the spending bill without it, sending it to the Senate.
  • Rep. Dina Titus led the push to restore full loss deductibility, testified before the committee, and says about 25 bipartisan colleagues back the effort, including Rep. Max Miller.
  • Under last year’s change, gamblers can deduct only 90% of losses against winnings, creating taxable “phantom income” even when a player breaks even.
  • Proponents say they will try to attach the fix to another must-pass bill or pursue action in committees such as Ways and Means, with no immediate vote scheduled.
  • Industry officials and tax professionals warn the cap will hit professional and high-stakes players hardest, while some lawmakers, including Sen. James Lankford, oppose reversing it.