Senate Republicans Block Bill Restoring Full Gambling Loss Deduction

Senate Democrats, led by Nevada Sen. Catherine Cortez Masto, have proposed legislation to repeal a provision in President Donald Trump's recent tax package that limits gamblers to deducting only 90% of their losses against winnings, down from the previous full 100% deduction. This change, critics argue, forces gamblers to pay taxes on money they never retained, effectively creating "phantom income" that could harm Nevada's gaming industry and tourism. Despite bipartisan support, including from Sen. Ted Cruz (R-Texas) and Rep. Dina Titus (D-Nev.), Senate Republicans blocked the unanimous consent request to pass the repeal bill, with Sen. Todd Young (R-Ind.) objecting unless unrelated amendments were attached. Many lawmakers, especially Republicans, claimed they were unaware of the gambling tax provision when voting on the large tax bill. The dispute continues as Democrats push the FULL HOUSE Act to restore full deductibility, emphasizing the potential economic damage and unfair tax burden imposed on professional gamblers and the gaming sector. Cortez Masto and her allies remain determined to resolve the issue despite the legislative setbacks.