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Congress·In Committee·8 months ago

Congress moves to restore tax rule limiting gambling-loss deductions to the amount of winnings

Also known as: Facilitating Useful Loss Limitations to Help Our Unique Service Economy (FULL HOUSE) Act

Legislative Progress

✓ Filed
Review
Senate
House
President

Impacts

Negative Impacts(3)
Sports Betting
Hurts
Small Business Owner
Hurts
Gig Worker
Hurts

Key Points

  • Congress would restore a rule that gambling losses can only be deducted up to the amount of gambling winnings.
  • The bill says “gambling losses” includes other costs tied to betting, so you can’t use extra expenses to create a bigger tax write-off.
  • This mainly affects people who gamble frequently, including professional gamblers who track costs connected to wagering.
  • If you usually lose more than you win, this could raise your taxes because those extra losses wouldn’t reduce your taxable income.
  • The change would start for tax years beginning after December 31, 2025 (basically, the 2026 tax year).
TaxesConsumer Protection

Milestones

2 milestones2 actions
Jul 9, 2025Senate

Read twice and referred to the Committee on Finance.

Jul 9, 2025

Introduced in Senate

What Happens Next

Projected impacts based on AI analysis

During 2026 as people place bets and prepare for filing

People who gamble may adjust record-keeping for 2026 (tracking winnings, losses, and what counts as a wagering-transaction expense)

Keeping clear records becomes more important to avoid IRS problems and to understand whether deductions will actually reduce taxes under the tighter rule.

Related News

10 articles
Forbes·about 2 months ago

Gambling Tax Alert: New Law Cuts Loss Deductions, Bettors Face Big Hit

Explains the 2026 change limiting deductible gambling losses to 90% and highlights legislative efforts to reverse it, including proposals to restore full deductibility.

CR−
Kiplinger·about 2 months ago

Trump 2025 Tax Bill: What's Changed and How It Affects Your Taxes

Broad explainer of the July 2025 tax law; includes the gambling-loss deduction change among other provisions and when it takes effect.

C=
Kiplinger·2 months ago

Law Reversal Looming? Trump Eyes 2026 Gambling Winnings Tax Change

Covers ongoing backlash to the 90% cap and political/industry pressure to change the rule before/into 2026, referencing pushback and repeal efforts.

C~

Source Information

Document Type

Congressional Bill

Official Title

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

Bill NumberS 2230
Congress119th Congress
ChamberSenate
Latest ActionRead twice and referred to the Committee on Finance.

Sponsor

Cosponsors

(6)
D: 2R: 4

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.