Congress·In Committee·S. 2230

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

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

9 months ago·View on Congress.gov

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Stalled

No legislative action in over 90 days.

Legislative Progress

Senate

House

President

Law

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

Impact Analysis

Personal Impact

How this policy affects specific groups of people

Negative Impacts(3)

Sports Betting

Hurts

Small Business Owner

Hurts

Gig Worker

Hurts

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.