Overview

• The law signed last week cuts the longstanding full deduction for gambling losses to 90%, with the change taking effect January 1, 2026.
• The Joint Committee on Taxation estimates the cap will generate roughly $1.1 billion in additional revenue over the next decade.
• Rep. Dina Titus and Sen. Catherine Cortez Masto have filed bipartisan legislation aimed at restoring the 100% deduction before the new limit applies.
• The American Gaming Association and major operators such as DraftKings are lobbying Congress and the administration to reverse the provision.
• Professional gamblers warn the reduction will create taxable phantom income for high-volume bettors and could drive them to offshore, unregulated markets.