By Richard Rubin

House lawmakers advanced legislation on Wednesday that would reverse a piece of last year's tax law that is hurting gamblers.

In Republicans' "one big, beautiful bill," Congress created a new limit on the deduction for gambling losses. Taxpayers now can deduct only 90% of their losses, instead of deducting all losses up to the amount of their winnings. In some cases, that means taxpayers could effectively owe income taxes even if they didn't have net gambling income.

The bipartisan change, pushed by Nevada lawmakers, would restore the full deduction up to the amount of winnings. It would apply for tax year 2026 if it becomes law.

"Gaming is central to our economy, and for workers and families through my district, they depend on it," said Rep. Steven Horsford (D., Nev.).

The provision is part of broader legislation that would change the tax rules for cryptocurrency and digital assets.

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(END) Dow Jones Newswires

September 16, 2026 18:00 ET (22:00 GMT)