Nevada's Push to Restore Full Gambling Loss Tax Deduction: A Comprehensive Guide

By jili tutorial · October 12, 2026

Nevada’s Push to Restore Full Gambling Loss Tax Deduction: A Comprehensive Guide

Nevada lawmakers are once again rallying to restore the full federal tax deduction for gambling losses, a move that could significantly impact both individual gamblers and the broader gaming industry. This effort comes in response to recent legislative changes that have left many taxpayers facing potential liabilities even when they break even on their gambling activities. Here’s an in-depth look at the issue, its implications, and the ongoing efforts to address it.

The Current Scenario: Why the Deduction Matters

Under the current tax laws, particularly those introduced by the One Big Beautiful Bill signed into law by President Donald Trump in July 2025, the deduction for gambling losses has been limited to 90% of losses, starting with the 2026 tax year. Previously, taxpayers could deduct 100% of their gambling losses against their winnings, ensuring that only net gains were taxed.

For example:

A gambler who reports $10,000 in winnings and $10,000 in losses can now only deduct $9,000.
This leaves $1,000 as taxable income, even though the player technically broke even.

This change has sparked widespread concern, particularly in Nevada, where the gaming industry plays a pivotal role in the state’s economy.

The Push for Restoration: A Matter of Fairness

Democratic Rep. Steven Horsford, representing Nevada’s 4th Congressional District, has been a vocal advocate for restoring the full deduction. During the Global Gaming Expo (G2E) in Las Vegas, Horsford emphasized that this issue is not just about gamblers but also about the thousands of workers and businesses that rely on the gaming industry.

Horsford’s proposed legislation, the FULL HOUSE Act, seeks to reinstate the 100% deduction. He argues that taxing income gamblers never actually kept is unfair and could discourage participation in legal gaming, ultimately harming the industry.

Legislative Progress: Committee Approval and Challenges

On September 16, the House Ways and Means Committee voted 38-5 to approve a broader tax package that includes the proposed restoration of the deduction. This marks the most significant progress in the effort so far. However, the legislation still needs approval from the full House and Senate before it can reach the president’s desk.

Notably, Horsford’s bill has garnered bipartisan support, with Republican Rep. Max Miller of Ohio co-sponsoring the FULL HOUSE Act. Additionally, Nevada Democrat Dina Titus introduced the FAIR BET Act in July 2025, which also aims to restore the deduction. Despite this momentum, no timetable has been set for further congressional action, leaving the 90% deduction limit in place for the 2026 tax year.

The Gaming Industry’s Perspective: A Unified Call for Action

The American Gaming Association (AGA), along with major casino operators like Wynn Resorts, has been a strong advocate for restoring the full deduction. They warn that taxing non-existent income could deter players from participating in legal gaming, ultimately impacting businesses and jobs tied to the industry.

Craig Billings, CEO of Wynn Resorts, highlighted the importance of the committee vote as a step forward but stressed the need for continued advocacy to ensure the issue is addressed before the end of the congressional session.

Broader Implications: Workers and Communities

Horsford has framed the issue as one of economic fairness, emphasizing that the change affects not just gamblers but also the livelihoods of casino dealers, hospitality workers, and others whose jobs depend on the gaming industry. Restoring the deduction, he argues, would protect these workers and ensure the continued prosperity of communities reliant on gaming.

What’s Next?

While the committee vote has provided momentum, the proposed restoration remains unresolved. Without further congressional action, the 90% deduction limit will remain in place, leaving gamblers and the gaming industry in a precarious position. Advocates hope to see swift progress in the coming months, but the timeline for achieving this goal remains uncertain.

Conclusion

The push to restore the full gambling loss tax deduction is a critical issue for Nevada and the broader gaming industry. As lawmakers, industry leaders, and advocates continue to fight for fairness, the outcome of this effort will have far-reaching implications for taxpayers, workers, and businesses alike. Stay tuned for updates as this legislative battle unfolds.