Attempts to Overturn Gambling Tax Deduction Bill Fail

As part of President Donald Trump's One Big Beautiful Bill, a cap of 90% was placed on the amount of losses that retail and online gamblers can deduct to offset gross winnings. This was certainly unpopular among experienced gamblers who create a lot of gross winnings during any given year.

In the current legislative session, the US House Rules Committee failed to pass an amendment, known as the Consolidated Appropriations Act, HR 7148. The bill sought to restore the deduction to 100%, the same rate that had been used for at least a decade.

For bill sponsor Rep Dina Titus, it's a fairness issue. Why should gamblers have to pay taxes on gross winnings if they instead had net losses?

Titus told the press:

“You shouldn’t tax people on money that they don’t earn. It’s ghost money, it’s not fair, and we can fix it. I urge you all to please make this amendment in order, and let’s go back to the way things were and should be.”