A bill to undo a controversial tax change affecting US gamblers ran into strong opposition in the Senate on July 10, halting plans to bring back full deductions for gambling losses.
Effort to Restore Full Gambling Loss Deductions Thwarted by Republican Hold
Nevada Senator Catherine Cortez Masto, who opposes the provision, tried to speed up the approval of her FULL HOUSE Act. This bill aims to cancel a part of the recent Republican-backed tax reform, reported KTNV. The new law, which President Donald Trump signed last week, caps gambling loss deductions at 90% of winnings, down from the previous 100%. Those against the change argue it might force gamblers to pay taxes even when they do not make a profit.
Cortez Masto tried to speed up her plan without going through the usual committee steps. However, Indiana Republican Senator Todd Young stopped her even though he said he backed the measure. Young wanted to pair it with his own idea, which would cut taxes on religious school funds, like those of Notre Dame. His request led to more pushback.
Senator Ron Wyden of Oregon, the lead Democrat on the Senate Finance Committee, called Young’s move an attempt to add special-interest rules to unrelated bills. Wyden said many lawmakers did not know about the gambling tax change before it became law, showing how rushed the lawmaking process was.
Cortez Masto Warns Gambling Tax Change Could Push Bettors Offshore
The blocked proposal has sparked heated debates in Nevada, where the country’s biggest gambling industry is based. Cortez Masto cautioned that this change might harm not just Las Vegas but also the wider US betting market, pushing players to use unregulated or offshore sites.
She voiced her annoyance with how the massive tax bill, over 900 pages long, was written behind closed doors, leaving senators rushing to grasp all its details. Cortez Masto noted that even some Republicans were caught off guard by the gambling deduction limit, with a few admitting they found out about it after poker players raised the alarm.
Even with the setback, Cortez Masto promised to keep pushing to repeal, stressing that her plan has support from both parties, including Republican Senator Ted Cruz. In the House, Nevada Representative Dina Titus is also working on a repeal bill backed by members from both sides.
People have criticized the controversial tax rule as unfair to gamblers across the country, though it is expected to bring in over $1 billion in eight years. Critics say it could affect not just pro players, but also casual betters who join fantasy sports, play slot machines, and take part in other gaming activities. Cortez Masto swore to keep fighting on this issue, cautioning that the tax change might hurt economies that depend on tourism and gaming, while encouraging illegal gambling operations.