Breaking: Senate Bill To Roll Back Gambling Losses Tax Deduction Cut Coming Thursday

Nevada Democratic Sen. Catherine Cortez Masto will introduce legislation Thursday to repeal a tax provision on gambling losses that is part of President Donald Trump’s recently passed “One Big Beautiful Bill Act” (OBBBA).

OBBBA, which passed July 4, includes a provision stating that gamblers can only deduct 90% of their losses. Previously, gamblers could deduct 100%, so the bill poses concern that professional gamblers or sharp bettors will take their business offshore or might be disincentivized to report accurately, which will cost states tax dollars.

Casino Reports obtained a copy of Cortez Masto’s bill and her office told Casino Reports that the bill — ‘‘Facilitating Useful Loss Limitations to Help Our Unique Service Economy” (FULL HOUSE Act) — will be introduced via unanimous consent. 

“Any one senator can object to the bill’s passage, but we’re hopeful it could pass given the bipartisan support for fixing this issue,” a Cortez Masto spokesperson said.

Titus filed similar bill Monday

The bill reads that gamblers should not be taxed on losses, effectively returning to the pre-OBBBA status quo of 100% deduction. The bill states: “Losses from wagering transactions shall be allowed only to the extent of the gains from such transactions.”

Nevada Democratic Rep. Dina Titus filed a similar bill Monday, the FAIR BET Act, to repeal the item.

“It is slightly different than Representative Titus’ language, but does effectively the same thing,” a spokesperson from Cortez Masto’s office said in an email to Casino Reports.

The FAIR BET Act calls to amend the OBBB’s wording from “90 percent” to “100 percent,” hoping to revert to the current law. Titus’ legislation has been filed in the House and has been assigned to the Ways and Means Committee, but does not yet have a hearing date.

In response to Sen. Cortez Masto’s bill, Rep. Titus said on X, “Any bill or unanimous consent action in the Senate would be just for show. My FAIR BET Act is the real fix to the Senate’s error in lowering the gambling loss deduction to 90%.”

The American Gaming Association (AGA) supports both legislators’ attempts to amend the item. “The American Gaming Association applauds Congresswoman Titus for introducing the FAIR BET Act,” the AGA’s spokesperson said Wednesday. “We are committed to working with Congresswoman Titus, other congressional leaders, and the Trump Administration to restore the long-standing tax treatment of gaming losses.”

GOP: Unaware gambling rollback was included

Many Republican lawmakers who were pressured by the president to pass the bill so he could sign it by July 4, as well as industry professionals, have expressed confusion as to why and how the provision was included in the bill, according to HuffPost.

John Pappas, state advocacy director at iDevelopment and Economic Association, supports both rollback bills. “It’s great to see support building to reverse this policy,” he said. “Nevada lawmakers are consistent champions, but it will be critical to broaden bi-partisan support from lawmakers across the country whose constituents and industries are impacted by this new tax law.”