FAIR BET Act status: is the 90% gambling cap repealed?

By the W2gMatch team · Sources checked 09-28-2026 · General information, not tax advice.

As of September 28, 2026, the 90% gambling loss cap has not been repealed. On September 16, 2026, the House Ways and Means Committee voted 38-5 to advance H.R. 10357, whose Title VII would restore the 100% deduction for tax years beginning after December 31, 2025. It has passed neither chamber, so section 165(d) still limits 2026 losses to 90%.

Status as of September 28, 2026: not repealed. Plan 2026 on the 90% rule.

Last legislative action: September 16, 2026, House Ways and Means Committee, 38-5 to order H.R. 10357 reported. [3] [4] Nothing has passed either chamber and nothing has been signed. We re-date this page within a day of any committee vote, floor vote or signature.

What the 90% rule says today

26 U.S.C. 165(d), as amended by section 70114 of Public Law 119-21 (the One Big Beautiful Bill Act, signed July 4, 2025), allows a deduction for wagering losses equal to 90 percent of the losses, and only to the extent of wagering gains, for taxable years beginning after December 31, 2025. [1] The same amendment says “losses from wagering transactions” include any otherwise allowable deduction incurred in carrying on a wagering transaction, which pulls a professional's travel and other expenses under the same cap. [1] [2]

Tax year 2025 is not affected: on a 2025 return filed in 2026, 100% of documented losses are deductible up to winnings. The 90% figure first applies to the 2026 return filed in 2027. [1] Either year, the deduction is on Schedule A and only itemizers get it; the 90% cap page explains the rule and the deduction page covers who can take it.

What happened on September 16, 2026

On September 16, 2026, the House Ways and Means Committee voted 38-5 to order H.R. 10357, the Digital Asset Tax Certainty Act, reported in the nature of a substitute. [4] The bill is mainly a cryptocurrency tax bill introduced two days earlier by committee chairman Jason Smith, but its Title VII is the FULL HOUSE Act. [2] [4] The Joint Committee on Taxation's description of the bill (JCX-47-26, September 14, 2026) says the proposal “eliminates the 90-percent limitation, enacted by Public Law 119-21, on the deduction for losses from wagering transactions” and that it is “effective for taxable years beginning after December 31, 2025.” [2] In plain terms: if it became law as written, the 100% deduction would apply to the whole of tax year 2026, not just from the date of signature. [2] [12]

The committee's own release describes the provision as restoring “the ability of taxpayers to deduct financial losses incurred due to gambling, preventing taxpayers from being taxed on phantom income.” [3] The Joint Committee on Taxation put the revenue cost of the repeal at about $2 billion over ten years, as reported by Covers. [12]

What the vote did not do: it did not pass the House, the Senate has not acted, and the President has not signed anything. The House is not scheduled to return until after the November 2026 midterm elections, so a floor vote is not expected before then. [12] Rep. Dina Titus, whose FAIR BET Act started the effort, said after the vote: “After 14 months of fighting to get this commonsense, bipartisan fix through committee, we must now encourage the House to approve this measure before Jan. 1, 2027.” [10] [13]

Every repeal bill, in one table

BillShort titleSponsorIntroducedLatest actionStatusSrc
H.R. 10357Digital Asset Tax Certainty Act (Title VII: FULL HOUSE Act)Rep. Jason Smith (R-MO), chairman of Ways and MeansSept. 14, 2026Ordered reported by Ways and Means, 38-5, Sept. 16, 2026Awaiting a House floor vote[4]
H.R. 4304FAIR BET ActRep. Dina Titus (D-NV)July 7, 2025Discharge petition No. 119-16 filed Feb. 12, 2026In committee, no hearing or vote[5]
H.R. 6985FULL HOUSE Act (House)Rep. Max Miller (R-OH) with Rep. Steven Horsford (D-NV)Jan. 8, 2026Referred to Ways and Means, Jan. 8, 2026Text carried into H.R. 10357[6]
S. 2230FULL HOUSE Act (Senate)Sen. Catherine Cortez Masto (D-NV)July 9, 2025Unanimous-consent passage blocked, July 10, 2025In Senate Finance, no vote[9]
H.R. 4630WAGER Act of 2025Rep. Andy Barr (R-KY)July 23, 2025Referred to Ways and Means, July 23, 2025In committee, no action[8]

Bill records from the Library of Congress bill-status data as read on September 28, 2026, except the S. 2230 latest action, which comes from the Senate floor record. All five bills do the same thing: strike the 90 percent figure and restore losses to the full extent of gains. Only H.R. 10357 has moved past introduction.

Timeline: how the repeal effort got here

  1. July 4, 2025. Public Law 119-21 is signed; section 70114 writes the 90 percent figure into section 165(d) for taxable years beginning after December 31, 2025. [1]
  2. July 7, 2025. Rep. Titus introduces the FAIR BET Act, H.R. 4304, referred to Ways and Means. [5]
  3. July 9 and 10, 2025. Sen. Cortez Masto introduces S. 2230, the FULL HOUSE Act, and the next day asks unanimous consent to pass it. Sen. Todd Young asks to add an unrelated amendment; Sen. Wyden objects to the amendment and Sen. Young objects to the original request, so the bill does not pass. [7] [9]
  4. July 23, 2025. Rep. Barr introduces the WAGER Act, H.R. 4630. [8]
  5. January 8, 2026. Reps. Miller and Horsford introduce the House FULL HOUSE Act, H.R. 6985. [6] [19]
  6. January 2026. The House Rules Committee declines to attach the FAIR BET Act to the 2026 defense authorization bill, so it gets no floor vote by that route. [14] [15]
  7. February 12, 2026. Rep. Titus files a motion to discharge H.R. 4304 from committee, Petition No. 119-16; a discharge petition needs 218 signatures to force a floor vote. [5] [16]
  8. September 14, 2026. Chairman Smith introduces H.R. 10357 with the FULL HOUSE Act as Title VII; Reps. Horsford and Miller are among the original cosponsors. [2] [4]
  9. September 16, 2026. Ways and Means orders H.R. 10357 reported, 38-5. [3] [4] [11]

What still has to happen

A committee vote is the first of four steps, and the other three are all ahead. In order: the full House has to pass H.R. 10357, which is not expected before the November 2026 midterm elections; the Senate has to pass the same text, or the two chambers have to reconcile their versions; and the President has to sign it. [12] [13] If the 119th Congress ends without all three, every bill in the table dies and the process starts over in 2027. Rep. Titus's stated target is enactment before January 1, 2027. [10] [13]

The industry is on the record for the fix: the American Gaming Association, MGM Resorts, Caesars, Wynn, DraftKings, FanDuel, the Nevada Resort Association and the National Thoroughbred Racing Association are named as supporters in the sponsors' releases. [10] [11] [13] Support is not a vote count. Until the fourth step is done, the 90 percent figure is the law for tax year 2026.

Three ways this ends, on the same $100,000

Take a player who wins $100,000 and loses $100,000 in 2026 and itemizes. Winnings go on Schedule 1 in full either way; only the Schedule A loss line changes.

1. Nothing passes: 90% rule stands. Deductible losses$90,000
Taxable gambling income (phantom income)$10,000
2. Signed before the 2026 return is filed: 100% restored. Deductible losses$100,000
Taxable gambling income$0
3. Signed after you file on the 90% rule: amend with Form 1040-X to claim$10,000 more
Taxable gambling income after amendment$0

Tax year 2026, $100,000 won and $100,000 lost. Outcome 3 rests on H.R. 10357 keeping its effective date of taxable years beginning after December 31, 2025; Form 1040-X is the IRS form for correcting a filed Form 1040.

The smaller version: $50,000 won and $50,000 lost leaves $5,000 taxable under the 90% rule, which at a 32% marginal rate is $1,600 of federal tax on money the player never kept. A repeal that reaches back to January 1, 2026 would return that $1,600, but only if the $50,000 of losses is documented well enough to deduct in the first place. [2] [17] [18] The calculator runs your own figures, and the phantom income guide works more cases.

2025 return vs 2026 return, with and without repeal

Tax year 2025 (filed in 2026): share of documented losses deductible100%
Tax year 2026 under current law90%
Tax year 2026 if H.R. 10357 is enacted as written100%
Cap at winnings, every yearYes
Must itemize on Schedule A, every yearYes
Carry unused losses to another year, every yearNo

The repeal bills change one number. They do not change the winnings cap, the itemizing requirement or the no-carryover rule.

What to do now, whichever way it goes

Keep records for 100% of your 2026 losses, not 90%. The IRS asks for an accurate diary or similar record of your gambling winnings and losses, backed by receipts, tickets, statements or other records. [17] IRS Publication 529 lists what the diary should show: the date and type of each wager, where you played, who was with you and the amounts won and lost. [21] Under the 90% rule every missing dollar of loss costs you nine tenths of a deduction; under a retroactive repeal it costs you the whole dollar. A win/loss statement (the operator's annual estimate of your tracked wins and losses) from each casino and sportsbook supports the diary but does not replace it. Our session log template is built for this, and the sample file shows what a reconciled set of statements and W-2Gs looks like.

If you file a 2026 return on the 90% rule and a repeal is later enacted with the effective date in the committee text, the way to claim the other 10% is an amended return on Form 1040-X, which corrects a filed Form 1040. [18] That claim will need the same substantiation as the original deduction. Nothing else in the W-2G rules moves with these bills: the $2,000 W-2G threshold for 2026 payments is not touched by the repeal text, so the forms arrive the same either way. [2] [20] The thresholds page has the 2025 and 2026 figures side by side.

How we keep this page current

The status line at the top and the “last checked” date carry the same date and move together. We check the bill-status records for the five bills above, the Ways and Means Committee's markup and press pages and the sponsors' releases, and we re-date this page within a day of any of these: a House floor vote, a Senate committee or floor vote, a conference or amended text that changes the effective date, a signature or a veto, or the end of the 119th Congress without enactment. The answer at the top changes only when the law changes.

Related questions

Has the FAIR BET Act passed?

No. As of September 28, 2026 the FAIR BET Act, H.R. 4304, has had no hearing or vote; its last action is a discharge petition filed February 12, 2026. The same fix, as the FULL HOUSE Act, is Title VII of H.R. 10357, which the House Ways and Means Committee approved 38-5 on September 16, 2026. That bill still needs the full House, the Senate and the President's signature.

Is the 90% gambling loss rule repealed for 2026?

Not yet. 26 U.S.C. 165(d), as amended by section 70114 of Public Law 119-21, limits the deduction to 90% of losses for tax years beginning after December 31, 2025. H.R. 10357 would restore 100% for those same years if enacted, but as of September 28, 2026 it has passed only a House committee.

When could repeal happen?

The House is not scheduled to return until after the November 2026 midterm elections, so a floor vote is not expected before then. After the House, the Senate has to pass the same text and the President has to sign it. Rep. Titus has asked for enactment before January 1, 2027. If the 119th Congress ends first, the bills die and the effort restarts in 2027.

If repeal passes after I file, do I get the 10% back?

Under the committee text, yes, by amending. H.R. 10357 as ordered reported is effective for taxable years beginning after December 31, 2025, so it would cover all of 2026. If it became law after you filed a 2026 return on the 90% rule, Form 1040-X is the form to correct that return and claim the remaining losses, and only losses you can substantiate.

What should I do while the bill is pending?

Plan your 2026 return on the 90% rule and keep records for 100% of your losses: a session log, win/loss statements from every operator and every W-2G. A retroactive repeal is only worth money if each dollar of loss is documented.

Does the 90% rule affect my 2025 return?

No. The 90% figure applies to taxable years beginning after December 31, 2025. On a 2025 return filed in 2026, 100% of documented gambling losses are deductible, capped at winnings, for taxpayers who itemize.

What is H.R. 10357 and why is a crypto bill repealing a gambling rule?

H.R. 10357, the Digital Asset Tax Certainty Act, is a digital-asset tax bill introduced by Ways and Means chairman Jason Smith on September 14, 2026. Its Title VII carries the FULL HOUSE Act, which strikes the 90 percent limit in section 165(d). Attaching the fix to a larger committee bill gave it the committee vote the stand-alone bills never got.

How many bills would repeal the 90% cap?

Five in the 119th Congress: H.R. 4304 (FAIR BET Act, Titus), H.R. 4630 (WAGER Act, Barr), S. 2230 (FULL HOUSE Act, Cortez Masto), H.R. 6985 (FULL HOUSE Act, Miller and Horsford) and H.R. 10357, which carries the FULL HOUSE Act text and is the only one to clear a committee.

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Sources

  1. 26 U.S.C. § 165(d), Wagering losses, as amended by Pub. L. 119-21 § 70114 (Legal Information Institute), amendment effective for taxable years beginning after December 31, 2025
  2. Joint Committee on Taxation, Description of H.R. 10357, the Digital Asset Tax Certainty Act (JCX-47-26), Title VII, Reinstatement of rules for wagering losses, September 14, 2026
  3. House Committee on Ways and Means, Historic digital asset tax legislation advances (H.R. 10357 passes committee 38-5), September 16, 2026
  4. Library of Congress bill status, H.R. 10357, Digital Asset Tax Certainty Act (119th Congress), Latest action September 16, 2026
  5. Library of Congress bill status, H.R. 4304, Fair Accounting for Income Realized from Betting Earnings Taxation Act (FAIR BET Act), Latest action February 12, 2026
  6. Library of Congress bill status, H.R. 6985, FULL HOUSE Act (House), Introduced January 8, 2026
  7. Library of Congress bill status, S. 2230, FULL HOUSE Act (Senate), Introduced July 9, 2025
  8. Library of Congress bill status, H.R. 4630, WAGER Act of 2025, Introduced July 23, 2025
  9. U.S. Senate Daily Press, floor proceedings of Thursday, July 10, 2025 (unanimous-consent request on S. 2230), July 10, 2025
  10. Rep. Dina Titus, release on the Ways and Means vote on H.R. 10357 and the FAIR BET Act, September 16, 2026
  11. Rep. Steven Horsford, Horsford delivers FULL HOUSE Act to protect Nevadans, September 16, 2026
  12. Covers, House vote advances repeal of 90% gambling loss deduction limit, September 16, 2026 (secondary source)
  13. Betting News, H.R. 10357 advances gambling loss tax deduction fix, September 17, 2026 (secondary source)
  14. Yogonet, U.S. House panel blocks FAIR BET Act, leaving 2026 gambling tax change in place, January 12, 2026 (secondary source)
  15. CDC Gaming, House Rules Committee blocks FAIR BET Act, leaving 2026 gambling tax reform uncertain, January 10, 2026 (secondary source)
  16. Thoroughbred Daily News, Discharge petition filed in attempt to force House vote on restoring gambling-loss tax deductions to 100%, February 13, 2026 (secondary source)
  17. IRS Tax Topic 419, Gambling income and losses, page last reviewed June 11, 2026
  18. IRS, About Form 1040-X, Amended U.S. Individual Income Tax Return, Last reviewed May 19, 2026
  19. Rep. Max Miller, Reps. Miller and Horsford introduce FULL HOUSE Act to end unfair taxation of gambling losses, January 14, 2026
  20. IRS Instructions for Forms W-2G and 5754, Rev. January 2026
  21. IRS Publication 529, Miscellaneous Deductions, Gambling losses up to the amount of gambling winnings, Rev. December 2020

Related

This page is general information about how U.S. federal and state tax rules apply to gambling, written to be checked against the sources it cites. It is not tax advice for your situation. A licensed CPA or enrolled agent should review your return before it is filed.