Rep. Dina Titus Faces Setback in Push to Restore Full Gambling Loss Tax Deduction

Nevada Rep. Dina Titus is pressing on with her campaign to undo a controversial federal tax change affecting gamblers, even after her latest effort encountered significant resistance. Republican House leaders blocked her attempt to attach an amendment restoring the full deduction for gambling losses to a sweeping federal funding bill.

The Cap Remains Highly Contentious

Rep. Titus revealed on social media that her proposal was denied both debate and a vote, leaving supporters searching for another way to achieve their legislative goals. Her amendment targeted language buried in last year’s “One Big Beautiful Bill,” which introduced a cap limiting gambling loss deductions to 90% of winnings. Previously, gamblers could deduct losses up to the full amount of their reported winnings.

Titus has consistently framed the rollback effort as an issue of fairness. She argues that the current 90% cap effectively taxes professional and high-frequency gamblers on income they never received. Such individuals already operate on narrow margins, meaning that the change could reshape where they conduct their business.

I’m still fighting for this fair tax policy. I submitted another amendment to the funding bill this week to restore the gambling loss tax deduction to 100%.

Nevada Rep. Dina Titus

Support for reversing the cap has crossed party lines. Nevada Democrat Steven Horsford and Ohio Republican Max Miller recently introduced separate legislation to restore the 100% deduction. The two lawmakers argue that the current tax framework could have significant negative consequences for the broader gaming ecosystem. However, several similar proposals have failed to gain traction in recent months.

Gambling Companies Fully Support the Initiative

The gaming industry has taken notice. The deduction cap threatens to impact player activity, hurting major casino operators and sportsbook companies. They believe an outflow of high-value customers may lead to lower revenues, effectively offsetting the expected gain in federal proceeds. These players account for a disproportionate share of wagering volume and may explore offshore markets that do not contribute any tax revenue.

Lobbying efforts have also intensified. The American Gaming Association and several high-profile operators have ramped up outreach efforts to Washington lawmakers. Professional gamblers have also voiced their concerns. Many argue that other high-risk financial activities, such as trading stocks or commodities, are free from comparable limits on loss deductions.

Titus has indicated she plans to continue pressing the issue. She noted that the blocked amendment represents a temporary setback rather than a final defeat and has already submitted another amendment to the funding bill. Supporters of full gambling loss deductions are also turning their attention to the Senate, where they hope to gain traction.