Support Grows to Repeal Gambling Tax in Trump Budget Bill

More lawmakers and pundits are lining up to strike down the provision in President Donald Trump’s budget bill that raises taxes on gamblers. 

The provision in the One Big Beautiful Bill Act, which Trump signed into law last week, stipulated that gamblers could only deduct 90% of their losses against their gains. Previously, they could deduct 100%, and accountants and gamblers have warned that this change could result in tax bills even in years of losses. Earlier this week, the Fair Bet Act was introduced in the House to nullify the provision.

A group in the Senate followed suit Thursday. Sen. Catherine Cortez Masto (D., Nev.) introduced the Full House Act, with co-sponsors Sen. Jacky Rosen (D., Nev.) and Sen. Ted Cruz (R., Tex.). Full House is an acronym for Facilitating Unbiased Loss Limitations to Help Our Unique Service Economy. 

The bill was applauded by casino magnate Derek Stevens, who owns Circa, Golden Gate, and The D in Las Vegas. Stevens wrote on X that the bills in the House and Senate “can fix the unintended tax consequence that would decimate the Gaming industry.”

As covered by Sports Betting Dime, the Full House Act did not receive unanimous consent, as it was rejected by Sen. Todd Young (R., Ind.), which means it will be subject to formal voting procedure. 

Last week, gamblers in poker and sports betting communities sounded the alarm about the new taxes, and their pleas have emanated into the mainstream. 

“I think that’s brutal,” Jim Cramer said on CNBC in a segment this week explaining how gamblers could owe taxes even in flat years. 

The Fair Bet Act, an acronym for Fair Accounting for Income Realized from Betting Earnings Taxation, was introduced in the House earlier this week by Rep. Dina Titus (D., Nev.), and supported by Reps. Ro Khanna (D., Calif.), and Troy Nehls (R., Texas).

“While I proudly voted for the One Big Beautiful Bill Act, which prevents the largest tax hike in American history, the Senate’s version contained a provision that I strongly disagree with,” Rep. Nehls told Front Office Sports in a statement. “Prior to the passage of the OBBBA, the tax code contained a 100% deduction for gambling losses and expenses up to the amount of the individual’s winnings. This deduction was not changed in the House-passed version of the bill. The Senate, unfortunately, included a provision in their version of the legislation that reduced the allowable deduction to 90%, creating an overly punitive tax on gambling. This provision is unfair, which is exactly why I am a cosponsor of Rep. Dina Titus’ FAIR BET Act.”

Rep. Titus has since indicated that Reps. Steven Horsford (D., Nev.), Jeff Van Drew (R., N.J.), Mark Amodei (R., Nev.), Susie Lee (D., Nev.), and Gil Cisneros (D., Calif.) are supporting her bill. 
Sen. Mike Crapo (R., Idaho), the chair of the Finance Committee, authored the provision that limited deductions on gambling taxes in the final version of the OBBBA.