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Read Full BioSenate Republican lawmakers have blocked an attempt by Nevada Democratic Sen. Catherine Cortez Masto to reverse the gambling tax hike provision included in the Senate version of President Trump’s One Big Beautiful Bill Act.
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.
