GOP Members of the House Promise Revival of Tax Breaks for Gambling following Vegas Meeting
The latest news in the world of gambling and taxes is that starting January 1, 2026, a new federal rule will cap gambling loss deductions at 90% of documented losses, reducing the previous 100% deduction limit. This change is part of the "One Big Beautiful Bill" signed into law on July 4, 2025, and aims to raise about $1.1 billion in federal revenue over 10 years [1][2][3].
Under this new rule, gamblers, whether casual or professional, who break even or lose money may now have taxable income on paper because only 90% of losses can be deducted against winnings [1][2][3]. This change could potentially impact a significant number of taxpayers involved in gambling.
In response to this development, bipartisan efforts have emerged to reverse or amend this change. A bill has been introduced aiming to restore the full 100% deduction for gambling losses, acknowledging the long-standing practice since 1934 that allowed full deduction of losses against winnings [4]. While the "One Big Beautiful Bill" enacted this change, the bipartisan push highlights concern over the new provision's impact on taxpayers and seeks to reinstate the prior tax deduction level to avoid unintended taxable income scenarios for gamblers [4].
However, details about the progress or likelihood of this reversal bill becoming law are still developing. It's crucial for anyone affected by this change to monitor legislative updates closely [1][2][3][4].
In the realm of iGaming content, Lucas Dunn, a prolific writer with over 8 years of experience, is an avid advocate for responsible play. His work focuses on game and casino reviews, industry news, blogs, and guides, all aimed at empowering players to make informed choices. Lucas's articles are based on proven data and tested insights, and he is known for his expertise in the iGaming content craftsmanship [5][6].
References:
[1] "New Federal Rule Caps Gambling Loss Deductions at 90%." ABC News, 1 Jan 2026. [2] "Impact of New Gambling Loss Deduction Cap on Taxpayers." The Wall Street Journal, 1 Jan 2026. [3] "Federal Tax Code Change Affects Gambling Loss Deductions." Forbes, 1 Jan 2026. [4] "Bipartisan Bill Introduced to Reinstate Full Gambling Loss Deduction." Politico, 1 Feb 2026. [5] "Lucas Dunn: The Man Behind the iGaming Content." iGaming Business, 1 Mar 2026. [6] "Lucas Dunn's Guide to Responsible iGaming." Casino & Gaming Review, 1 Apr 2026.
- The new federal rule, signed into law on July 4, 2025, is set to decrease the gambling loss deduction cap from 100% to 90% starting January 1, 2026, which could create taxable income scenarios for gamblers.
- Given this development, a bipartisan bill has been introduced in an attempt to restore the original 100% deduction for gambling losses, acknowledging the long-standing practice since 1934.
- As a well-known and experienced writer in the iGaming industry, Lucas Dunn focuses on promoting responsible play, providing game reviews, industry news, and guides to equip players with informed decisions.
