Mastro introduced the FULL HOUSE Act, aimed at restoring the full deduction for gambling losses. She followed a similar effort in the House, led by Rep. Dina Titus, also from Nevada.

The controversial provision, buried deep within the 940-page tax-and-spending package, went unnoticed by many lawmakers. However, after the gambling world raised the alarm, many stated they would vote to repeal it.

With the change, gamblers would be able to deduct 90% of gambling losses, compared to the current 100% (up to the winnings). That means many recreational and professional gamblers could be required to pay taxes even if they don’t make a profit.

Sen. Young Objects Over Unrelated Issues

On July 10, Mastro attempted to pass her legislation using unanimous consent. That’s a procedural move that requires no objections to pass.

However, despite bipartisan support, with many Republicans acknowledging they didn’t even know about the provision, Sen. Todd Young (R-Indiana) objected. That effectively blocked the bill from advancing.

Young’s objection had nothing to do with the provision or unfavorable views on gambling. Instead, he used the moment to push for unrelated policies. They include exceptions for religious college endowments and other tax adjustments that Democrats previously rejected.

Young said he supports the policy but would only agree to undo it if Democrats accepted other provisions in return.

“I strongly support the underlying bill, but will have to object unless you can agree to my request,” Young said on the Senate floor.

Efforts in the House Continue

Although the Senate effort has stalled for now, Cortez Masto has indicated she plans to continue pushing for the FULL HOUSE Act through regular legislative channels.

Meanwhile, efforts continue in the House, where Rep. Titus introduced the FAIR BET Act on July 7.

Titus was among the first to pledge to reverse the measure as soon as the Senate passed it. After the House passed the Senate’s version without changes, Titus stated that she wanted to offer an amendment. However, House managers refused to accept any.

The FAIR BET Act is expected to proceed through committee review in the House in the coming weeks.

The post Senate Republicans Block Effort to Reverse Gambling Tax Hike Under Big Beautiful Bill appeared first on CasinoBeats.

Nevada Democratic Sen. Catherine Cortez Masto is set to introduce the FULL HOUSE Act (Facilitating Useful Loss Limitations to Help Our Unique Service Economy), which will reverse the amendment in Trump’s OBBB that limits the amount of losses gamblers can deduct from their winnings to 90%. 

The FULL HOUSE Act follows the FAIR Bet Act, which was introduced by Rep. Dina Titus in the House earlier this week. 

A spokesperson for Sen. Cortez Masto commented, “Any one senator can object to the bill’s passage, but we’re hopeful it could pass given the bipartisan support for fixing this issue.”

Senators Unaware Of Gambling Tax Amendment

It was revealed that many Senators were not aware of the content of the amendment that introduced the tax limitation on gamblers.  

The Huffington Post reported that Sen. John Cornyn of Texas admitted, “I don’t know anything about it. I’m not sure what it does.”

Similarly, Sen. Chuck Grassley of Iowa revealed in an interview, “If you’re asking me how it got in there, no, I don’t know.”

Senators were under pressure to pass the bill, which Elon Musk has famously called “a disgusting abomination,” before Trump’s deadline of July 4. 

The size of the legislation meant some parts, such as the gambling tax, went unnoticed. 

Sen. Thom Tillis called the gambling tax “bad policy”, but stated, “I was so focused on Medicaid, I wasn’t looking for other reasons to be against the bill.”

FAIR Bet Act and FULL HOUSE Act: The Same, But Different

Both bills would effectively do the same thing and restore the ability of gamblers to deduct all their losses from winnings before paying tax on the profits. 

A spokesperson for Sen. Cortez Masto stated, “It is slightly different than Representative Titus’ language, but does effectively the same thing.”

Rep. Titus posted on X that Cortez Masto’s bill is “just for show”.

A reminder for my friends in the Senate: Revenue bills must originate in the House, per the Constitution. Any bill or unanimous consent action in the Senate would be just for show. My FAIR BET Act is the real fix to the Senate’s error in lowering the gambling loss deduction to…

— Dina Titus (@repdinatitus) July 8, 2025

There appears to be support for the addition of Cortez Masto’s legislation, however. 

John Pappas, State Advocacy Director at iDevelopment and Economic Association, commented: “It’s great to see support building to reverse this policy.” 

“Nevada lawmakers are consistent champions, but it will be critical to broaden bi-partisan support from lawmakers across the country whose constituents and industries are impacted by this new tax law.”

The American Gaming Association (AGA) has also expressed support for lawmakers reversing the controversial tax change. 

An AGA spokesperson said, “We are committed to working with Congresswoman Titus, other congressional leaders, and the Trump Administration to restore the long-standing tax treatment of gaming losses.”

After the tax change was added to the bill, professional gamblers also spoke out against the legislation, which could change profits into significant losses. 

The reaction to the bills in both chambers will determine whether lawmakers will reinstate the ability of gamblers to fully deduct losses before paying tax. 

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