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Rep. Dina Titus says House Republican leaders have again kept her from getting a vote on a fix to the new federal rule that limits how much gamblers can deduct in losses.
The change came in last year’s sweeping tax package. It cuts the gambling-loss deduction to 90% starting in the 2026 tax year. As a result, some people could owe federal income tax even when they did not finish the year ahead.
Titus wants the old rule back.
Titus says leaders shut out her latest amendment
Titus introduced the FAIR BET Act last summer. The bill would restore the full 100% loss deduction by changing the Internal Revenue Code from “90 percent” back to “100 percent.”
She has also tried to attach the same fix to must-pass legislation.
This week, Titus filed another amendment tied to the federal funding bill moving through Congress. She said House GOP leaders would not allow debate or a vote.
She hit the same roadblock in late January. The House Rules process did not advance the gambling-loss fix for floor action. That left it off the spending package.
Funding bill became law without any gambling tax fix
Lawmakers passed the fiscal year 2026 funding vehicle without restoring the 100% deduction.
The bill, H.R. 7148, cleared the House on Jan. 22. It became law on Feb. 3, 2026. Congress did not add any last-minute language to address the gambling-loss cap before final passage.
That leaves the 90% limit in place unless lawmakers pass a new bill.
Why the 90% cap matters to bettors
Under the old rule, gamblers could deduct losses up to the amount of winnings. That meant federal tax followed net results.
Under the new rule, taxpayers can get hit even when they break even.
Example: report $100,000 in winnings and $100,000 in losses in 2026. The taxpayer can only deduct $90,000 of losses. That leaves $10,000 as taxable income, despite no profit.
Supporters of a fix call it a “phantom income” problem. They say it punishes high-volume bettors and professional gamblers. They also warn it could push more play offshore.
Other bills are also chasing the same outcome
Titus is not alone.
In January, Reps. Steven Horsford and Max Miller introduced the FULL HOUSE Act in the House. Sen. Catherine Cortez Masto filed a companion bill in the Senate. The goal is the same across these efforts: tax people on net gambling results, not on gross winnings.
Still, some lawmakers are playing it down. Sen. James Lankford has described the change as a “pretty minor” shift in tax policy.
Where the fight goes from here
With the funding bill already law, Congress needs a fresh vehicle to change the deduction.
That could mean a standalone bill. It could also mean adding the fix to the next must-pass package later in 2026.
For now, the 90% cap stands. Titus and other backers say they will keep pushing, but House leaders have shown they do not want this debate on the floor.
Source: Khon 2
