**The 90% cap on wagering loss deductions, enacted in the July 2025 One Big Beautiful Bill Act as part of a reconciliation package, took effect for tax years beginning in 2026.** It replaced the prior full offset of losses against winnings and was retained to generate revenue while satisfying Senate procedural rules. Multiple bipartisan repeal efforts, including the FAIR BET Act and FULL HOUSE Act, have been introduced since mid-2025, with support from gaming-state lawmakers and industry groups, but repeated attempts to attach fixes to appropriations or other must-pass measures have been blocked in the House Rules Committee. As of September 2026, no repeal legislation has advanced through committee or reached a floor vote. Recent advocacy, such as letters urging executive attention and testimony at the IRS’s July 2026 hearing on related regulations, has highlighted concerns over phantom income and compliance burdens but has not produced legislative momentum. With limited time remaining before the December 31, 2026 resolution deadline and competing congressional priorities, traders assign roughly 80% probability that the cap remains in place through the end of the year.