Nevada lawmakers are once again striving to restore the full federal tax deduction for gambling losses. Still, the effort remains unresolved more than a year after Congress approved a change that could leave some gamblers paying taxes even when they break even.
A Matter of Fairness
Democratic Rep. Steven Horsford renewed his call for action during the Global Gaming Expo (G2E) in Las Vegas, promoting legislation that would allow taxpayers to deduct 100% of their gambling losses against winnings, up to the amount won.
The change was introduced under the One Big Beautiful Bill, inked by President Donald Trump in July 2025.
Beginning with the 2026 tax year, the law limits the deduction to 90% of gambling losses, creating a potential tax liability even for players who finish the year without making a profit.
For example, according to the new rules, a player who reports $10,000 in gambling winnings and an equal amount in losses can only deduct $9,000. That leaves $1,000 in taxable gambling income despite the player breaking even.
Horsford, who represents Nevada’s 4th Congressional District, called restoring the deduction a matter of fairness, saying that the change does not only affect gamblers but also workers and businesses that depend on the gaming industry.
“The people who make our state and our communities prosperous, because of their hard work, we’re going to make sure that their voice is at the table,” Horsford said at G2E.
The restoration effort made its most significant progress on September 16, when the House Ways and Means Committee voted 38-5 to approve a broader tax package that included the proposed fix.
Horsford introduced the FULL HOUSE Act alongside Republican Rep. Max Miller of Ohio. A similar proposal, the FAIR BET Act, was introduced by fellow Nevada Democrat Dina Titus in July 2025, shortly after the deduction change became law.
Titus welcomed the committee vote but criticized the time it took to advance the measure. More than two dozen lawmakers from both parties have backed versions of the restoration proposal, although progress had been limited before September’s vote.
The legislation is still looking for clear approval from the full House and Senate before it can reach the president’s office, but no timetable has been announced for further congressional action.
This leaves gamblers subject to the reduced deduction for the 2026 tax year.
Gaming Industry Seeks a Reversal
The American Gaming Association, along with major casino operators, have expressed their support for full deduction restoration, warning that taxing gambling income players never actually kept could make them stop wanting to participate in legal gaming, thus severely affecting businesses linked to the industry.
Wynn Resorts’ chief executive officer, Craig Billings, said in Horsford’s September release that the committee action signals progress, while highlighting the need for more work to be done ahead of the end of the congressional session.
Horsford also tied the issue to the livelihoods of casino dealers, hospitality employees, as well as other workers whose jobs depend on gaming.
For the time being, the committee vote has given supporters momentum, but it has not changed the tax rules. Without further congressional action, the 90% limit remains in place, leaving the proposed restoration unresolved.