House Panel Weighs Letting Gamblers Deduct All Their Losses Again

Jason Smith of Missouri, who chairs the House tax committee, wrote a full fix for the gambling loss deduction into a crypto tax bill introduced on Sept. 14, 2026.

One part of H.R. 10357 would let gamblers deduct their losses up to the full amount of their winnings again, and it would cover all of 2026. Under the 90% limit in force today, a bettor who wins $100,000 and loses $100,000 in the same year can deduct only $90,000. The other $10,000 counts as income, so the bettor pays tax on money that never reached their pocket.

The Cap Taxes Bettors on Money They Never Kept

The limit comes from one section of the One Big Beautiful Bill Act, the tax law signed on July 4, 2025. Senators changed the bill before the final vote, and the version that passed also put the expenses of running a betting business under the same 90% limit.

That combination hits full-time players hardest. Poker Hall of Famer Erik Seidel told The Nevada Independent in December 2025 that the change left him "kind of forced into retirement."

Rep. Dina Titus, a Nevada Democrat who filed the first repeal bill on July 7, 2025, warned that the cap would push players toward offshore sites with no U.S. license and leave winnings unreported.

A Committee Vote Is Only the First Step

The fix copies the FULL HOUSE Act, which Reps. Steven Horsford of Nevada and Max Miller of Ohio introduced on Jan. 8, 2026.

Taxing people on money they never actually earned is fundamentally unfair and harmful to Nevada's economy.

Horsford said that in the statement announcing the bill. Miller, a Republican, said Americans "should not be taxed on money they didn't actually take home."

The committee put the package on its agenda for 10 a.m. ET on Sept. 16, 2026, alongside six other bills. That is the session where members debate the text and vote on it.

Chris Cylke, who handles government relations for the American Gaming Association, the casino industry's lobby group, said in December 2025 that the group wants the full deduction back.

The committee vote is the first step. The full House and the Senate come next. Bettors file their 2026 returns in April 2027, and any fix has to pass before then.

Treat gambling as entertainment you pay for. 18+, and if it stops feeling like entertainment, help exists at BeGambleAware and GamCare.