One bill designed to restore the gambling losses tax deduction to 100% is languishing in committee and has, for all intents and purposes, politically flat-lined.
The giant tax and spending bill signed into law by President Donald Trump in July caps gambling loss deductions to 90% of winnings (from 100%)–a provision set to go into effect next year.
Industry leaders have warned this rate change could hit horse racing hard through reduced revenues from gambling dollars. Those jurisdictions with no supplemental purse revenues, like California, are especially vulnerable to the impacts from Trump’s spending bill.
At the same time, new language was recently added to another bill that seeks to restore the gambling losses tax deduction to 100% and has moved to the House Ways and Means Committee.
