Rep. Dina Titus Faces Challenges in Restoring Full Gambling Loss Tax Deduction
Ongoing Battle to Reinstate Full Gambling Loss Deduction
Representative Dina Titus from Nevada continues her efforts to reverse a recent federal tax change that restricts how gamblers can deduct their losses. Her latest attempt to attach an amendment to a major federal funding bill was blocked by Republican House leaders, who prevented both debate and a vote on the issue.
Dispute Over the Gambling Loss Deduction Cap
Titus shared on social media that her proposal was halted before discussion, prompting advocates to seek alternative ways to pursue the restoration. The amendment aimed to undo changes made in a previous comprehensive federal bill that introduced a cap, limiting gambling loss deductions to 90% of winnings. Earlier, gamblers were allowed to deduct losses equal to their full winnings.
Titus argues that this cap is unfair, especially for professional gamblers and those who gamble frequently, as it taxes income they never actually gained. Given their thin profit margins, this tax adjustment could influence where these gamblers choose to operate their businesses.
“I remain committed to advocating for a fair tax policy. I have submitted another amendment to restore the gambling loss deduction to 100%.”
Rep. Dina Titus
Bi-Partisan Support and Legislative Efforts
Efforts to repeal the cap have received bipartisan backing. Nevada Democrat Steven Horsford and Ohio Republican Max Miller recently introduced separate bills aimed at reinstating the full deduction. Both emphasize the potentially harmful effects the current tax rules could have on the broader gaming industry. Despite these initiatives, similar proposals have often struggled to progress recently.
Strong Industry Backing and Lobbying Activity
The gaming sector has expressed significant concern about the deduction cap. Major casino and sportsbook operators warn that the limit could reduce player engagement, leading to revenue declines that might offset any federal tax gains. High-value gamblers who drive a large portion of wagers might shift their activities to offshore markets, which generate no tax revenue for the U.S.
Lobbying efforts by industry groups like the American Gaming Association, along with pro-gambling operators, have intensified to influence lawmakers. Professional gamblers also highlight that loss deduction limitations do not similarly impact other high-risk financial activities, such as stock or commodity trading.
Looking Ahead: Continued Advocacy and Senate Focus
Rep. Titus has emphasized that the rejection of her amendment is not the final word on the matter. She has already submitted a new amendment and remains determined to pursue full restoration of gambling loss deductions. Supporters are also shifting some focus to the Senate, hoping for greater success in that chamber.
