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

    How will the reinstatement of wagering loss rules impact the overall revenue of the federal government?
    What are the potential economic benefits of allowing wagering losses to be deducted up to the amount of wagering gains?
    If wagering losses are allowed, will the IRS start offering betting tips to maximize deductions?

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