Rep. Dina Titus’ latest attempt to roll back a new federal cap on gambling loss deductions was blocked in the House, leaving a 90% limit in place for 2026 and beyond unless Congress acts again.
The decision keeps pressure on lawmakers to address a tax change that could raise effective tax bills for some gamblers, including high-volume bettors and professional players who rely on full loss offsets to reflect real-world results.
Rules Committee blocks the amendment
Titus sought to attach a fix to the FY2026 funding package, using a moving legislative vehicle to restore the deduction to 100% of winnings for federal tax purposes.
House leaders stopped that effort before it reached the floor. The House Rules Committee did not make the amendment eligible for debate or a vote, ending the path inside that spending bill.
The outcome reflects a familiar dynamic. Even when an issue has scattered support, leadership control over floor access can keep it out of must-pass negotiations.
What the 90% cap changes in 2026
The new rule limits the deduction for gambling losses to 90% of winnings. That creates a scenario where a taxpayer can owe federal tax even if they are close to break-even across the year.
The change is most visible for frequent bettors and professional gamblers who run high turnover with thin margins. It can also affect reporting incentives by widening the gap between gross activity and net results.
For regulated operators, the cap is not just a technical tweak. It can shape customer questions, tax messaging, and how players perceive the cost of compliant play.
Why Titus keeps tying it to must-pass bills
Titus has framed the cap as a fairness problem that hits regulated-market behavior while doing little to disrupt illegal gambling. Her strategy has been to force action through larger packages that lawmakers are already committed to passing.
That approach is built for speed. The downside is that it depends on gatekeepers allowing a vote, which is where the latest attempt failed.
With the amendment blocked, the fight shifts back toward stand-alone legislation or a Senate-driven vehicle that can pull the issue into a broader negotiation.
Next vehicle will decide the timeline
The cap now stands as lawmakers head deeper into the 2026 tax and budgeting calendar. Any reversal will require new legislative momentum, either through committee action or an opening in a future must-pass bill.
The next concrete marker is whether Titus or allied lawmakers can secure a floor pathway before the rule meaningfully reshapes behavior during the 2026 tax year.
