Gambling Tax Repeal: Fair Bet Act, Wager Act, and Full House Act
According to multiple commentators, Congress passed the 90% gambling loss cap to satisfy a budget technicality, and now multiple bipartisan bills aim to undo it. As of this writing, none have reached a floor vote. Here is where things stand.
Current Status
None of the repeal bills have advanced to a floor vote in either chamber. A recent effort by Sen. Cortez Masto to fast-track the FULL HOUSE Act through unanimous consent was blocked by Sen. Todd Young (R-IN). A separate attempt to add the Fair Bet Act as an amendment to the NDAA was also blocked in the House Rules Committee.
The challenge is procedural: repealing a budget-scored provision typically requires either finding replacement revenue or passing the repeal through regular legislative order rather than reconciliation. Based on typical legislative timelines, a repeal could take months or longer, and it may or may not be made retroactive to the start of 2026.
The Three Repeal Bills
There are three distinct bills currently in play, all aiming to restore full deductibility of gambling losses.
FAIR BET Act (H.R. 4304)
Introduced in the House by Rep. Dina Titus (D-NV). According to the bill text, this bill keeps the revised OBBBA language but substitutes “100 percent” for “90 percent.” Tax Notes analysis suggests this approach may be preferable to a full revert because the OBBBA rewrite includes some beneficial language changes beyond just the loss deduction cap. The bill has 24 cosponsors from both parties (13 Democrat, 11 Republican).
WAGER Act (H.R. 4630)
Introduced in the House by Rep. Andy Barr (R-KY). The Winnings and Gains Expense Restoration Act is the first Republican-led repeal bill, aimed at restoring 100% deductibility of gambling losses.
FULL HOUSE Act (S. 2230)
Introduced in the Senate by Sen. Ted Cruz (R-TX) and Sen. Catherine Cortez Masto (D-NV). The Facilitating Useful Loss Limitations to Help Our Unique Service Economy Act reinstates rules regarding the deductibility of wagering losses.
Why This Rule Exists
The 90% gambling loss limitation was not created for tax policy reasons, according to multiple commentators. It was included in the OBBBA primarily to meet the Senate’s Byrd Rule budget requirements, which among other things restrict reconciliation bills from including provisions that increase the deficit beyond the budget window.
According to Greenleaf Trust, the provision was included solely for budget scoring purposes. The Joint Committee on Taxation estimates it generates approximately $1.1 billion in revenue (sources vary on whether the scoring window is eight or ten years).
Many of the same Congress members who voted for the OBBBA have since co-sponsored bills to repeal this specific provision, which some commentators have interpreted as a sign of limited policy support for the rule.
What This Could Mean
As currently enacted, the 90% rule applies for the 2026 tax year unless repealed. Even if a repeal bill passes, it may not be retroactive.
Some things worth considering:
- Tracking gambling activity now means having accurate records either way. If the rule is repealed retroactively, those records would be relevant to determining any deduction available under the revised rules. A tax professional can help evaluate how the current rule and any potential changes apply to an individual situation.
Protect Yourself: Track Your Gambling Sessions
Accurate records protect you regardless of how this rule is interpreted. Our web app makes it simple.
- Easily log every session right from your phone
- Record dates, locations, game types, and amounts
- Track across casinos, sportsbooks, and online platforms
- Generate an IRS-ready gambling diary at year end
How to Take Action
Anyone who believes the 90% rule should be repealed can contact their senators and representative:
- Find your representatives: USA.gov elected officials lookup
- Template letters and scripts: DarkHorseOdds action page
Points that advocates for repeal have made:
- The provision was included for budget scoring, not as deliberate tax policy
- Critics argue it creates “phantom income” that could result in taxes on money gamblers did not keep
- Legislators from both parties have co-sponsored repeal bills
Stay Updated
We will update this page as repeal efforts progress. For a full breakdown of how the current 90% rule works, see our explainer. Whether or not repeal passes, accurate records from 2026 matter, so tracking your gambling sessions now could save time later.