Nevada Rep. Steven Horsford is keeping the pressure on Congress to reverse a federal tax change that could leave gamblers owing money even when they finish the year without making a profit. Speaking at the Global Gaming Expo (G2E) in Las Vegas, Horsford called attention to his efforts to restore the full deduction for gambling losses. The proposal made progress in September, but Congress has yet to approve the change.
The issue stems from the One Big Beautiful Bill Act, which President Trump signed into law in July 2025. Previously, qualifying taxpayers could deduct gambling losses up to the full amount of their winnings. Beginning with the 2026 tax year, the law limits that deduction to 90% of gambling losses, subject to the amount won.
That creates a problem for bettors who finish the year without a profit. Consider someone who records $50,000 in gambling winnings and $50,000 in losses. Under the previous rules, the bettor could potentially deduct the entire $50,000 in losses, leaving no taxable gambling profit.
Under the current law, only $45,000 would be deductible, leaving $5,000 in taxable gambling income despite breaking even. The change has drawn criticism because it isn’t fair, as people shouldn’t be taxed on money they never actually earned.
Horsford introduced the bipartisan FULL HOUSE Act alongside Republican Rep. Max Miller of Ohio. The legislation would restore the ability to deduct 100% of qualifying gambling losses against winnings, returning the federal tax rules to their previous structure.
Congress took a significant step toward that goal on September 16. The House Ways and Means Committee voted 38-5 to approve the Digital Asset Tax Certainty Act, a broader tax package that includes the proposed gambling-loss deduction change.
The legislation still needs approval from the full House and Senate before it can reach the president’s desk. At the moment, there is also no confirmed timetable for a final vote.
Rep. Horsford isn’t the only Nevada lawmaker trying to reverse the deduction limit.
Rep. Dina Titus introduced the FAIR BET Act in July 2025, shortly after the original tax legislation became law. Horsford and Miller followed with their own bipartisan proposal in January 2026. The issue is even more significant in Nevada, where casinos and tourism support thousands of jobs.
Rep. Horsford has argued that the tax change could affect more than professional gamblers. He believes discouraging gambling activity could also hurt dealers, hospitality employees and businesses that depend on visitors.
The American Gaming Association and several casino operators have also backed efforts to restore the deduction. Their concern is that higher taxes could discourage participation in regulated gambling, particularly among customers who wager frequently.
That could push bettors to offshore platforms, which don’t have the same consumer protections in place, putting them at risk. While it remains to be seen how this will be resolved, there’s clearly momentum to resolve this issue.
