Legislation sponsored by U.S. Rep. Andy Barr (R-KY) on July 23 would permit horseplayers to deduct 100 percent of their gambling losses in a tax year.
Specifically, the Winnings and Gains Expense Restoration (WAGER) Act of 2025, H.R. 4630, would amend the Internal Revenue Code of 1986 to restore wagering loss limitation rules, according to the Congressional Record bill summary.
“Restoring full deductibility of wagering losses will help the thoroughbred horse racing industry maximize economic value for equine businesses,” said Rep. Barr, chairman of the Congressional Horse Caucus. “I’ll work to deliver the WAGER Act in Congress and appreciate the work of equine and thoroughbred horse racing advocates in fighting for this bill alongside me.”
The measure has been endorsed by National Thoroughbred Racing Association President and CEO Tom Rooney; former State Senate Majority Leader Damon Thayer; Shannon Arvin, CEO of Keeneland; Drew Fleming, president and CEO of Breeders’ Cup Limited, among others.
“Horseplayers are vital to the livelihoods of over 33,000 Kentuckians employed in horse racing, and KTA is grateful to Congressman Barr for supporting our owners, trainers, breeders and horseplayers equally to ensure competitiveness,” said Chauncey Morris, Executive Director of the Kentucky Thoroughbred Association.
H.R. 4630 is under consideration in the U.S. House Ways and Means Committee.