H.R. 6985House119th Congress (2025-2027)In Committee

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

AI-Generated Summary

Updated January 22, 2026 at 8:41 AM UTC

The bill changes the tax code to once again limit how much taxpayers can deduct for gambling losses. Under the new rule, you can only deduct gambling losses to the extent they are offset by gambling winnings. This affects anyone who reports gambling activity on their federal tax return, including individuals and businesses that engage in wagering transactions. The changes take effect for tax years starting after December 31, 2025.

Key Provisions

Amends Section 165(d) of the Internal Revenue Code to allow deductions for wagering (gambling) losses only up to the amount of gambling winnings, reinstating the previous limitation.
Specifies that the term “losses from wagering transactions” includes any deduction otherwise allowable under the tax code for such activities.
Sets the effective date for these changes to taxable years beginning after December 31, 2025.

Legislative Activity

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1 earlier action

HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

January 8, 2026

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HouseIntro Referral

Introduced in House

January 8, 2026

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

January 8, 2026

Bill Text

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Introduced in HouseIssued January 8, 2026

119th CONGRESS

2d Session

H. R. 6985

IN THE HOUSE OF REPRESENTATIVES

January 8, 2026

Mr. Miller of Ohio (for himself and Mr. Horsford) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to reinstate the rules for wagering losses.

Short title

This Act may be cited as the Facilitating Useful Loss Limitations to Help Our Unique Service Economy (FULL HOUSE) Act.

Reinstatement of rules for wagering losses

(a)

In general

Section 165(d) of the Internal Revenue Code of 1986 is amended to read as follows:

(d)

Wagering losses

Losses from wagering transactions shall be allowed only to the extent of the gains from such transactions. For purposes of the preceding sentence, the term losses from wagering transactions includes any deduction otherwise allowable under this chapter incurred in carrying on any wagering transaction.

(b)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2025.