Congress moves to let gamblers write off all losses against winnings
H.R. 4304 — Fair Accounting for Income Realized from Betting Earnings Taxation Act · Filed by Dina Titus (D-NV) · 25 cosponsors · Introduced Jul 7, 2025 · Referred to committee
Your members of Congress
Enter a ZIP to see where your representative and both senators stood on this bill.
Looked up on this device — your ZIP is never stored on our servers.
What it does
This bill amends the tax code to allow taxpayers to deduct 100% of their wagering losses against wagering income, instead of the current 90% limit. In effect, it removes a $0.10-per-dollar cap on loss deductions for gambling, allowing bettors to fully offset gambling winnings with gambling losses for tax purposes.
Why we flagged it
The bill is a straightforward tax relief measure that removes a deduction cap benefiting individual bettors. It is a narrow tax carve-out with no broader public-policy justification—purely a reduction in tax liability for a specific activity.
What the text implies
- The 90% cap existed as a revenue-protection measure; removing it will reduce federal tax receipts from gambling activities, shifting the tax burden to other taxpayers or reducing public funding.
- The bill may incentivize higher-risk gambling by making losses more tax-deductible, potentially increasing problem gambling without addressing public-health consequences.
The full analysis lists 3 implications of this text.
Who stands to gain
individual bettors and professional gamblers; sports betting platforms (indirectly, through increased betting activity)