FINANCE

Tax Rules Shake-Up: Gambling Losses and Your Money

USAFri Jul 11 2025

Bill Overview

  • Name: FULL HOUSE Act
  • Objective: To modify how gambling losses are treated in taxes.

Current Rules vs. Proposed Changes

  • Current Rule: Gambling losses can only be deducted up to the amount of gambling winnings.
  • Proposed Rule: Maintains the current rule, effectively reviving older tax regulations.

Key Details

  • Introduced by: Senator Cortez Masto
  • Supported by: Senators Rosen and Cruz
  • Committee Review: Sent to the Finance Committee on July 9, 2025
  • Effective Date: If passed, changes would apply to taxes from 2026 onward.

Broader Context

  • Part of a larger discussion on financial regulations in the service economy.
  • Aimed at ensuring fairness in tax policies.

Potential Impact

  • The bill's significance will depend on the number of gamblers and their winnings/losses.
  • Not an immediate change, as it affects future tax years.

questions

    Is the FULL HOUSE Act a secret plot to control the gambling industry by making it more difficult for small-scale gamblers to deduct their losses?
    Is the reinstatement of wagering loss rules a way to track and monitor individuals' gambling habits?
    If wagering losses are allowed, will the IRS start offering betting tips to maximize deductions?

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