Steven Horsford of Nevada Urges Congress to Restore Full Gambling Loss Tax Deduction

US gamblers could owe federal taxes even after breaking even in 2026, as Congress has yet to restore the full gambling loss tax deduction. Nevada Rep. Steven Horsford is urging lawmakers to approve his bipartisan FULL HOUSE Act.

Good to Know

• The 2026 gambling tax rules allow eligible taxpayers to deduct only 90% of gambling losses, up to their winnings.
• The House Ways and Means Committee approved legislation containing the FULL HOUSE Act by a 38 to 5 vote on September 16.
• Congress has not scheduled the next vote, leaving the reduced deduction in place.

Gambling Tax Rules Could Affect Break Even Players

Under the One Big Beautiful Bill, which President Donald Trump signed in July 2025, gamblers can no longer deduct 100% of their losses against winnings.

For example, someone with $10,000 in gambling winnings and $10,000 in losses can deduct only $9,000 under the new rules. That leaves $1,000 in taxable gambling income despite breaking even.

The IRS confirms that the restriction applies to the 2026 tax year. However, only taxpayers who itemize deductions can claim gambling losses, and deductions cannot exceed winnings.

Horsford wants to reverse the change through the FULL HOUSE Act, which he introduced alongside Republican Rep. Max Miller of Ohio.

The proposal has attracted bipartisan support but still needs approval from the full House, Senate and President before becoming law.

Meanwhile, Horsford argues that the tax policy affects more than individual bettors. Casino operators, hospitality businesses and workers across Nevada also depend on gambling activity.

Speaking at the Global Gaming Expo (G2E), Horsford said:

“The people who make our state and our communities prosperous, because of their hard work, we’re going to make sure that their voice is at the table.”

His comments came during discussions about prediction markets and the challenges they present for regulated gambling businesses.

Horsford has also linked the tax deduction debate to employment across Las Vegas, including casino dealers, hospitality workers and union members.

Although lawmakers approved the tax proposal at committee level in September, Congress has announced no further timetable.

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