Gambling deductions tax fix shot down once again

The ongoing battle to restore gambling loss deductions has failed once again. This comes as an amendment to bill H.R.7148, which was shot down in a recent committee hearing.

Representative Dina Titus, a Democrat from Nevada, urged the change. She has now found 25 other legislators from both parties to support the change, but keeps being shot down.

At the center of the issue is that Titus and other lawmakers don’t believe that taxes should count gambling losses. As it’s money that the player didn’t acquire, it’s argued that it should be 100% deductible when tax season comes around.

Speaking at the committee, Titus said:

“It’s a fairness issue. 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.”

Gambling tax fix just won’t stick

Funny moment from @RepMcGovern (D-MA, Ranking Member of the House Rules Committee) on restoring 100% deductibility of gambling losses (up to the extent of winnings)

“Your bipartisan amendment sounds like a no brainer, which probably means it won’t be made in order, I hope I’m… https://t.co/tb0BcKvaCU pic.twitter.com/Wkn53HAdUW

— DataBasedBets (@DataBasedBets) January 21, 2026

Highlighted on X, formerly Twitter, Rep. Jim McGovern, a Democrat from Massachusetts, said:

“Your bipartisan amendment sounds like a no-brainer, which probably means it won’t be made in order. I hope I’m wrong on that… it just seems to be common sense.”

The tactic to try and get it through this time was to attach it to a larger bill.

It was noted that during the hearing, no “direct comments” were made by Republicans present. It should also be noted that some Republicans weren’t present as part of the testimony for the hearing, as it heavily focused on ICE and the Department of Homeland Security.

The Trump Administration’s change to how taxes and gambling are handled now leaves gamblers with a 90% cap on deductibles. Despite months of pushback through 2025 and now into 2026, it looks as if the cap will remain going forward.

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