Gambling Loss Deduction Cap Faces Bipartisan Repeal Push

President Trump's 'One Big Beautiful Bill Act' includes a provision reducing the allowable deduction for gambling losses from 100% to 90%, effective in 2026, which will result in gamblers being taxed on income even when they break even. The measure has sparked significant backlash from both professional and casual gamblers, as well as bipartisan opposition in Congress. Rep. Dina Titus (D-NV) has introduced the Fair Bet Act in an effort to restore the full deduction. Critics warn that the rule could devastate professional gamblers, increase tax burdens on casual bettors, and potentially push gambling activity to underground or offshore sites. The Joint Committee on Taxation estimates the change will generate $1.1 billion in tax revenue over a decade, but industry analysts caution it could reduce legal betting and harm state revenues. The amendment was inserted late in the legislative process and continues to face widespread criticism as momentum builds for its repeal.