- Reps. Steven Horsford and Max Miller introduced the FULL HOUSE Act in January to reverse a tax change that reduced gambling loss deductions to 90%.
- The updated rule can force gamblers to pay taxes even when they finish the year even, affecting both casual players and professionals.
- With the bill stalled in committee, questions remain about the potential impact on Nevada’s gaming-focused economy.
WASHINGTON — On January 12, Nevada Representative Steven Horsford and Ohio Representative Max Miller filed H.R. 6985, called the FULL HOUSE Act, aimed at undoing a new federal tax law change that impacts how gambling deductions work.
The proposed legislation would bring back the old rules for how gambling losses are handled on tax returns.
H.R. 6985 addresses a recent change from the One Big Beautiful Bill that altered the way gambling losses work for tax purposes. Under the old system, people could write off their gambling losses dollar-for-dollar against what they won. Now the rule caps loss deductions at 90%, which means gamblers who end up even for the year still get hit with taxes.
Someone who wins $10,000 throughout the year but also loses $10,000 during that same period can only write off $9,000 of those losses under the new rules. This creates a tax bill on $1,000 that never actually stayed in their pocket. All gambling activities are covered by the policy, including casino table games like roulette and blackjack as well as
legal sports betting and poker competitions.
Nevada’s Gaming Industry Faces Uncertainty
Since large tournaments like the World Series of Poker attract thousands of players annually, Nevada’s casino business has recognized the change. According to industry observers, both professional and recreational gamblers may withdraw if they have to pay higher taxes without really making more money. Nevada sportsbooks and casinos have begun to express concern about the potential impact of this on the number of patrons and the amount of money wagered.
Representative Dina Titus had put forward her own version of this fix earlier with the FAIR BET Act, but it got blocked when the House Rules Committee wouldn’t move it forward. According to her staff, they haven’t given up and are trying to either get it a hearing with the House Ways and Means Committee or find another bill to attach it to.
Multiple lawmakers in states with legal sports betting have backed efforts to restore the full deduction, citing the illogical nature of taxing income that was never realized. The FULL HOUSE Act would apply to tax years beginning after December 31, 2025, if passed. The bill’s future in Congress is uncertain as it is presently awaiting committee assignment.
