Sen. James Lankford (R‑OK) has publicly opposed bipartisan legislation that seeks to restore a 100% deduction of gambling losses, a move that poses a significant hurdle to the proposal’s advancement. His resistance is among the first from a Senate Republican to confront this effort, which currently enjoys support in both parties and both chambers of Congress.
Lankford stated to Punchbowl News that the current policy, allowing only a 90% deduction, is “a pretty minor change in that tax policy.” His view contrasts sharply with concerns that the cap creates inequities in the tax code.
Current Law and Its Impact
As of January 1, gamblers who itemize deductions can write off only 90% of their losses against their winnings. The remaining 10% is effectively taxed as income, even when no net profit exists.
For example, a player with $100,000 in wins and an equal amount in losses would still owe taxes on $10,000—income they never actually earned. This scenario has been described as taxing “phantom” income, raising fairness concerns among gamblers.
Bipartisan Efforts to Reverse the Cap
Representative Dina Titus (D‑NV) introduced legislation in the House to fix the deduction cap, backed by nearly two dozen cosponsors from both parties. A parallel measure, known as the FAIR BET Act, was also introduced by Rep. Andy Barr (R‑KY).
In the Senate, the FULL HOUSE Act, sponsored by Sen. Catherine Cortez Masto (D‑NV), aims to fully restore the deduction. Industry leaders and lawmakers expected swift action early in 2026, but the efforts have stalled.
