A bipartisan legislative effort is underway in Congress to restore a longstanding federal tax provision that allowed gamblers to fully deduct their losses against winnings. The proposed bill, titled the Facilitating Useful Loss Limitations to Help Our Unique Service Economy (FULL HOUSE) Act, was introduced by Representatives Steven Horsford of Nevada and Max Miller of Ohio in response to recent changes in the tax code that have drawn criticism from the gaming industry and lawmakers alike.
The FULL HOUSE Act targets a specific provision embedded in the GOP’s tax reform package, informally referred to as the “Big Beautiful Bill.” That provision altered the treatment of gambling losses under the Internal Revenue Code, reducing the allowable deduction from 100% to 90% of losses. Critics say this shift results in tax liabilities for gamblers even in cases where their net earnings are zero.
Under the current rule, individuals can only deduct up to 90% of their gambling losses, creating a scenario where they are taxed on income they did not actually realize. The FULL HOUSE Act seeks to revert to the prior standard, under which losses from wagering transactions could be deducted in full, limited only by the amount of gambling winnings.
“Taxing people on money they never actually earned is fundamentally unfair and harmful to Nevada’s economy,” said Representative Horsford. “This policy would drive tourism across our state elsewhere. There is strong bipartisan agreement that this provision was a mistake, and Congress must act to correct it.”
Representative Miller emphasized the principle of equity in the tax system. “The FULL HOUSE Act is about basic fairness in the tax code,” he said.
“Americans should not be taxed on money they didn’t actually take home,” Miller added. “By restoring the full deduction for gambling losses, this bill ensures the IRS treats taxpayers honestly and consistently. I’m proud to lead this bipartisan effort with Congressman Horsford, and I urge my colleagues to support this common-sense fix.”
The bill, designated H.R. 6985, was formally introduced on January 8, 2026, and referred to committee. If enacted, the amendments would apply to taxable years beginning after December 31, 2025.
The proposed change would reinstate Section 165(d) of the Internal Revenue Code to its previous form, allowing losses from wagering transactions to be deducted only up to the amount of gains from such transactions, including any other deductions incurred in the course of gambling.
Nevada lawmakers have warned that the current deduction cap could deter major gaming events and diminish tourism-driven revenues, a critical concern for a state heavily reliant on its hospitality and gaming industries.
The FULL HOUSE Act follows a prior attempt by Representative Dina Titus to address the same issue through her Fair Bet Act, which failed to advance in Congress after being blocked by the Rules Committee.
The legislative push coincides with signs of continued weakness in Nevada’s tourism sector. According to the Las Vegas Convention and Visitors Authority, visitor volume in November 2025 declined by 5.2 percent compared to the previous year, falling to 3.1 million. At Harry Reid International Airport, passenger traffic dropped 9.6 percent year-on-year to 4.3 million in November, following an 8.2 percent decline in October.
These figures come despite the return of events such as the Formula 1 Las Vegas Grand Prix. The most recent race occurred during the longest federal government shutdown in U.S. history, which disrupted air travel due to staffing shortages among unpaid air traffic controllers. However, tourism officials noted that the downward trend in visitor numbers began well before the shutdown.
Additional contributing factors include rising costs from inflation, which have impacted discretionary spending on travel and leisure. Trade tensions during the Trump administration and stricter immigration policies were also cited as influences that have discouraged international travel to the United States.
Original article: https://www.yogonet.com/international/news/2026/01/14/117124-full-house-act-introduced-in-congress-to-reinstate-full-tax-deduction-on-gambling-losses
