This bill reinstates the rule limiting the deduction of gambling losses to the amount of gambling gains for taxable years beginning after December 31, 2025.
Max Miller
Representative
OH-7
The FULL HOUSE Act aims to reinstate a specific rule for deducting gambling losses under the Internal Revenue Code. This change limits the deduction of wagering losses to the exact amount of a taxpayer's gambling winnings, preventing deductions for net losses. This provision is set to take effect for taxable years beginning after December 31, 2025.
FULL HOUSE Act Eliminates Tax Deductions for Net Gambling Losses Starting in 2026
The newly introduced “Facilitating Useful Loss Limitations to Help Our Unique Service Economy” (FULL HOUSE) Act is short, but its impact on a specific group of taxpayers is pretty clear. Forget the mouthful of a title; the bill is focused entirely on amending the tax code regarding gambling losses. Starting with the 2026 tax year, if you gamble, you can only deduct your losses up to the total amount of money you won that year.
The House Always Wins: Understanding the Deduction Limit
Right now, if you’re a recreational gambler, you can only deduct losses up to your winnings. The FULL HOUSE Act essentially locks this rule in place and clarifies that this limit also applies to any other tax deductions related to carrying on a wagering activity (Section 2). This means if you win $5,000 but lose $8,000 over the course of the year, you can only claim $5,000 in losses. That remaining $3,000 net loss? You can’t deduct it to lower your taxable income. For the average person who buys a lottery ticket or hits a casino once a year, this might not be a huge deal. But for people who treat wagering as a serious side hustle, or even a full-time, if ultimately unprofitable, business, this change directly impacts their bottom line.
Who Feels the Pinch?
This legislation is bad news for anyone who consistently ends the year in the red from legal wagering. Imagine a poker player whose annual winnings total $50,000, but whose documented losses—including related expenses like travel or entry fees—total $70,000. Under the current structure, they could potentially claim some of those related expenses. Under the FULL HOUSE Act, their deduction is strictly capped at $50,000, meaning they lose the ability to offset $20,000 of their income. This effectively increases their taxable income and, therefore, their tax bill. It’s a direct financial burden on individuals who sustain net losses from legal gambling activities (Section 2).
The Title That Makes No Sense
One detail that raises an eyebrow is the bill’s title, which claims to “Help Our Unique Service Economy.” The actual text, however, deals exclusively with tax deductions for gambling losses. There is zero mention of the service economy, small businesses, or anything else that usually falls under that umbrella. This disconnect between the bill’s name and its content is worth noting. While the provision itself is straightforward—it’s a tax code change meant to increase federal revenue by limiting deductions—the branding suggests a potential misdirection. It makes you wonder why a simple tax restriction needs to be packaged with such a broad, unrelated economic purpose.