House Committee advances bill to restore gambling loss deductions

The House Ways and Means Committee has voted 38-5 to advance H.R. 10357, a provision aimed at restoring the ability for taxpayers to deduct gambling losses up to 100 percent of their winnings.

The legislation seeks to reverse a cap established in July under the ‘One Big Beautiful Bill Act’ (OBBBA), which limited gambling-loss deductions to 90 percent. Under the current 90 percent rule, individuals with equal amounts of winnings and losses may still be liable for taxes on a portion of their income.

Industry leaders, including the National Thoroughbred Racing Association, have advocated for the restoration of the traditional rule. While the bill has passed the committee stage, a full vote on the House floor is not expected until after the November midterm elections. If passed by the House, the legislation will move to the Senate.