Efforts to repeal a controversial gambling tax provision saw a breakthrough Wednesday in the U.S. House of Representatives.
Key Takeaways
- The Ways and Means Committee voted 38-5 to advance the provision that would eliminate the 90% limit on gambling-loss deductions.
- Opponents of the provision have been fighting to have it eliminated since July.
- The government will lose out on significant revenue if it’s repealed.
The Ways and Means Committee overwhelmingly voted 38-5 to pass a provision that would eliminate the 90% limit on gambling losses taxpayers can deduct, which was included President Donald Trump's One Big Beautiful Bill Act (OBBBA) enacted in July.
Breaking: the big tax bill with a provision to repeal the 90% cap on gambling losses was just overwhelmingly voted through, with bipartisan support, to the House Rules Committee. It’s a technical step before it goes to the House floor for a full vote. https://t.co/bdANrNXjoH pic.twitter.com/0O1XlArxC6
— Fairplaygov (@fairplaygov) September 16, 2026
H.R. 10357, the Digital Asset Tax Certainty Act, received bipartisan support in the House committee Wednesday and is headed to the House floor for a full vote. The timing is unclear, as CNN reports the House is not scheduled to return until after the November midterm elections, meaning there will be no House vote on the provision Thursday.
If the House passes it, the Digital Asset Tax Certainty Act would then move to the Senate.
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Push for repeal
H.R. 10357, introduced earlier this week by Missouri Rep. Jason Smith, contains other tax provisions as well, but Wednesday’s strong support gives the repeal effort additional momentum.
“Our office was the first to detect this problem. We introduced legislation to fix it,” Nevada Rep. Dina Titus said in a social media post. “We’ve been sending letters, testifying, going to the IRS, lobbying our fellow members, helping get the delegation on board and get this done.
“Now let's get it to the floor, vote on it, and get it to the President, so by the end of the year, and before taxes have to be filed, this will be fixed.”
Finally, after 14 months of uncertainty, my fix to restore the 100% tax deduction for gambling losses has been passed out of committee.
— Dina Titus (@repdinatitus) September 16, 2026
I was the first Member of Congress to recognize this injustice when I introduced my provision to correct it on July 7, 2025. Since then, I have… pic.twitter.com/TOMud2inaf
Under the tax provisions passed over the summer, gamblers can deduct only 90% of their gambling losses, beginning with 2026 tax returns. However, a repeal would restore the full deduction for gambling losses, up to the amount won during the year, so taxpayers would again be able to deduct gambling losses up to their gambling winnings.
“You won't be paying taxes on money that you don't have,” Titus said. “For gamblers, whether you’re a weekend sports bettor or a professional poker player, this will work to help you not pay taxes that you don’t owe.”
Revenue loss
Professional gamblers have criticized the provision affecting U.S. sports betting and other forms of gambling since before it was included in the OBBBA. Titus said the repeal attempt wouldn’t have made it this far without the “groundswell of bettors” supporting the change.
The Joint Committee on Taxation previously projected that the gambling-loss provision would increase federal revenue by 33%. The committee estimates repealing the provision would reduce federal revenue by about $2 billion over the next 10 years.
The 90% cap on gambling losses would be repealed retroactive to 1/1/26 as part of the Ways & Means tax bill.
— Fairplaygov (@fairplaygov) September 16, 2026
Joint Committee on Taxation estimates a negative impact on revenue of $2 billion from ‘27-36 from this repeal.
The ‘27-34 estimate is $1.5 billion, up 33% from its $1.1… https://t.co/IB3WZCGXau pic.twitter.com/JYCThaopDC
