Last July 23, Representative Andy Barr unveiled the WAGER Act. He endorses restoring prior wagering loss limitation rules. This legislation mimics earlier efforts like the FAIR BET Act and FULL HOUSE Act.
It would repeal the OBBBA’s 90 percent cap on gambling loss deductions. Consequently, taxpayers could deduct 100 percent of losses up to their winnings. Thus gamblers avoid paying taxes on phantom gains.
Barr submitted House Resolution 4630 to the House Ways and Means Committee. Meanwhile, the FAIR BET Act and FULL HOUSE Act remain under bipartisan discussion. Equine industry supporters applaud Barr’s bill. They assert full deductibility benefits thoroughbred racing, breeders, and local economies.
Supporters emphasize fairness and economic growth. They argue current limits unfairly penalize horseplayers. Moreover, they state the issue harms racing purses. Representative Barr pledged to collaborate across party lines. He described the WAGER Act as essential for industry recovery.
Potential Impact on Online Casinos
Furthermore, the WAGER Act may significantly affect online casino games and online slot games. Currently, online casinos face pressure under OBBBA’s deduction limits. Bettors might avoid IRS scrutiny by shifting to unregulated casino platforms offshore. However, if WAGER passes, online casinos gain renewed trust.
Online slot games could see higher legal earnings and fair tax results. Also, it may reduce the appeal of offshore platforms. In addition, the restored deduction may influence online sportsbooks.
Where previously bettors faced restricted deductions, they now reclaim full losses. As a result, regulated operators may highlight fair tax standards to attract customers.
Timing is of the Essence
Representative Barr emphasized the bill’s timing. He filed WAGER two days before a House filed hearing on OBBBA in Las Vegas. Additionally, House Ways and Means Committee chair Jason Smith expressed bipartisan intent to fix the cap in time.
Still, Congress must act before the deduction cap begins on January 1, 2026. Otherwise taxpayers face unfair liabilities despite breaking even. In conclusion, the WAGER Act delivers renewed hope. It represents a third legislative attempt to ensure full loss deductibility.
If enacted, it could reshape tax treatment across all wagering, including online casino games and online slot games.
Last Updated on by jonathan r
