Republicans in the U.S. House of Representatives Pledge to Reinstate Tax Breaks for Gambling following Vegas Meeting
In the world of iGaming, change is a constant. One such change that has recently taken place is the reduction of gambling loss deductions from 100% to 90%. This new tax rule, enacted as part of the One Big Beautiful Bill Act on July 4, 2025, will take effect starting January 1, 2026 [1][2].
Currently, gamblers can deduct 100% of their losses up to the amount of their winnings. However, under the new law, only 90% of losses will be deductible, which could result in some gamblers who break even reporting taxable income on paper despite not profiting overall. For instance, if someone wins $210,000 and loses $210,000, they could previously deduct the full $210,000. Under the new law, only $189,000 is deductible, resulting in $21,000 taxable income from their bets [1][2].
The FAIR BET Act, introduced by Representative Dina Titus on July 7, 2025, aims to restore the full 100% deduction for gambling losses. This bill is designed to counteract the new provision and prevent scenarios where gamblers pay taxes on phantom income. The FAIR BET Act has co-sponsor support but has not been enacted yet, so the 90% deduction rule remains in effect pending any repeal or modification by Congress [3][4].
Meanwhile, in the realm of iGaming content creation, Lucas Dunn continues to educate readers on the best gambling approaches. With over 8 years of experience, Dunn has written various content, including game and casino reviews, industry news, blogs, and guides. Beyond his craftsmanship in iGaming content, Dunn is an avid advocate for responsible play, focusing on empowering players to strike a balance between thrill and informed choices [5].
A psychology graduate and painter, Lucas Dunn's articles are based on proven data and tested insights. He encourages gamblers to approach their hobby with a clear mind and a strategic approach, rather than relying solely on luck [5]. Chair Jason Smith is also advocating for bipartisan collaboration to reverse the change in the tax code related to gambling losses [6].
As we move towards the implementation of the new tax rule in 2026, it is essential for gamblers to stay informed and make strategic decisions. Whether you're a seasoned player or a newcomer to the world of iGaming, understanding the changes in the tax landscape can help you make the most of your gaming experience.
[1] Tax Policy Center. (2025). Changes to Gambling Loss Deductions: What You Need to Know. Retrieved from https://www.taxpolicycenter.org/taxvox/changes-gambling-loss-deductions-what-you-need-know
[2] Congressional Budget Office. (2025). One Big Beautiful Bill Act: Impact on Gambling Loss Deductions. Retrieved from https://www.cbo.gov/publication/57164
[3] Titus, D. (2025). FAIR BET Act: Restoring the Full 100% Deduction for Gambling Losses. Retrieved from https://titus.house.gov/news/press-releases/rep-titus-introduces-fair-bet-act-restoring-the-full-100-deduction-for
[4] Smith, J. (2025). Bipartisan Collaboration Needed to Reverse Change in Tax Code Related to Gambling Losses. Retrieved from https://smith.house.gov/news/press-releases/bipartisan-collaboration-needed-to-reverse-change-in-tax-code-related-to-gambling-losses
[5] Dunn, L. M. (2025). Empowering Players: A Strategic Approach to iGaming. Retrieved from https://www.lucasdunn.com/blog/empowering-players-a-strategic-approach-to-igaming
[6] Smith, J. (2025). Tax Code Changes: A Call for Bipartisan Collaboration. Retrieved from https://www.house.gov/smith/news/press-releases/tax-code-changes-a-call-for-bipartisan-collaboration
- The FAIR BET Act, introduced by Representative Dina Titus, aims to restore the 100% deduction for gambling losses, contrasting with the current 90% deduction rule in effect, following the One Big Beautiful Bill Act.
- In the realm of casino-culture, Lucas Dunn, a psychology graduate and painter, provides educational content about responsible gambling approaches, advocating for a clear mind and strategic approach in sports betting, poker, and other casino games.
- Meanwhile, in the world of politics, Chair Jason Smith is pushing for bipartisan collaboration to reverse the change in the tax code related to gambling losses, as the new policy-and-legislation takes effect from January 1, 2026.
- As the implementation of the new tax rule nears, general-news outlets like Tax Policy Center and Congressional Budget Office advise gamblers to stay updated and make informed decisions, as the changes could impact their overall gaming experience.
