Gambling tax repeal: where the bills stand.
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.
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.
The three repeal bills
There are three distinct bills currently in play, all aiming to restore full deductibility of gambling losses.
- H.R. 4304 · HouseIntroduced
FAIR BET Act
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 the loss deduction cap. Bipartisan cosponsors across both parties.
- H.R. 4630 · HouseIntroduced
WAGER Act
The Winnings and Gains Expense Restoration Act is the first Republican-led repeal bill, aimed at restoring 100% deductibility of gambling losses.
- S. 2230 · SenateBlocked
FULL HOUSE Act
The Facilitating Useful Loss Limitations to Help Our Unique Service Economy Act reinstates rules regarding the deductibility of wagering losses. A bipartisan bill with cosponsors including Sen. Jacky Rosen (D-NV) and Sen. Bill Hagerty (R-TN). A recent attempt to fast-track via unanimous consent was blocked by Sen. Todd Young (R-IN).
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. Many of the same members of Congress who voted for the OBBBA have since co-sponsored bills to repeal this specific provision.
How to take action
Anyone who believes the 90% rule should be repealed can contact their senators and representative.
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. Tracking gambling activity now means having accurate records either way.