Facilitating Useful Loss Limitations to Help Our Unique Service Economy (FULL HOUSE) Act

The FULL HOUSE Act would reinstate the federal tax rule that losses from wagering transactions can only be deducted to the extent of gains from those wagering activities. In practical terms, if you engage in gambling or betting activities, your allowable deduction for wagering losses would be limited to the amount you actually gained from wagering; any excess losses would not reduce your taxable income. The bill also expands the definition of “losses from wagering transactions” to include any deduction you are otherwise allowed under the tax code that was incurred in carrying on a wagering transaction. The changes would apply to taxable years beginning after December 31, 2025 (i.e., starting in 2026).