Facilitating Useful Loss Limitations to Help Our Unique Service Economy (FULL HOUSE) Act

Key Points

• Congress is considering a change to tax laws that would expand what counts as a gambling loss. Currently, you can only deduct the money you lost on bets up to the amount of your winnings. This bill would allow you to also deduct other costs, like travel or meals, that you paid for while gambling.
• This change would help people who gamble frequently by letting them use more of their expenses to lower the taxes they owe on their winnings. It essentially treats these extra costs the same as the money lost on a bad bet.
• The proposal is intended to help the service economy, which includes casinos and the tourism industry. By making it cheaper for people to gamble from a tax perspective, it could encourage more spending in those areas.
• If this bill becomes law, the new rules would take effect for the 2026 tax year. It would apply to anyone who files federal taxes and reports income from wagering or gambling activities.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.