House Ways & Means advances FULL HOUSE fix for gambling-loss deductions

House Ways & Means advances FULL HOUSE fix for gambling-loss deductions

On Wednesday 16 September 2026, the U.S. House Ways and Means Committee voted 38–5 to advance the Digital Asset Tax Certainty Act (H.R. 10357). Buried in that package is language from the bipartisan FULL HOUSE Act that would restore a 100% federal tax deduction for wagering losses — up to the amount of a taxpayer’s gambling winnings.

The vote is the first major committee step against a 90% loss-deduction cap created by the One Big Beautiful Bill, signed 4 July 2025. Under the current rule, a player who wins and loses the same amount over a year can still owe tax on 10% of those losses — what critics call phantom income.

What the 90% cap does to a break-even year

Desks covering the vote use a simple example: a gambler who wins $100,000 and loses $100,000 in the same year breaks even at the table, yet still faces federal tax on $10,000 because only 90% of losses can be deducted. For decades before 2025, losses could offset winnings dollar-for-dollar, so tax applied to net gains only.

The American Gaming Association has criticised the 90% rule as taxing phantom income and uniquely penalising a legal, regulated activity. Poker professionals including Erik Seidel, Josh Arieh and Daniel Negreanu have publicly argued the same point in desk coverage of the fight.

How FULL HOUSE language got into the digital-assets bill

Reps. Max Miller (R-OH) and Steven Horsford (D-NV) introduced the FULL HOUSE Act (H.R. 6985) in January 2026. Sen. Dina Titus (D-NV) had opened the repeal track earlier with the FAIR BET Act (July 2025). It was the FULL HOUSE wording — not a standalone FAIR BET floor vote — that Ways and Means folded into H.R. 10357 on 16 September.

According to Las Vegas Sun reporting, the package would eliminate the 90% limitation and apply to taxable years beginning after 31 December 2025, giving retroactive relief for 2026. It also aims to block a further reduction of the deduction that had been lined up for 1 January 2027.

Still not law

Committee passage is not enactment. The bill still needs a full House vote, Senate agreement and a presidential signature. After the 16 September markup, House leadership sent members into recess ahead of the 3 November 2026 midterms, so the next realistic floor window is after that election — not a guarantee of passage.

For players, the practical takeaway is narrow and dated: the 90% cap remains in force until Congress finishes the job. Anyone filing 2026 returns should treat committee action as a legislative milestone, not a change in IRS rules.

Read it next to [Ontario ICES gambling-disorder ED visits](/news/ontario-ices-gambling-disorder-ed-visits). Keep small print and responsible play in view.

More desk notes: news, casinos, [Ontario ICES gambling-disorder ED visits](/news/ontario-ices-gambling-disorder-ed-visits), small print, responsible play.