This bill proposes to amend the Internal Revenue Code of 1986 by reinstating specific rules for wagering losses . The core provision modifies Section 165(d) to clarify that losses incurred from wagering transactions are deductible only to the extent of the gains derived from those same transactions. Furthermore, the bill explicitly defines "losses from wagering transactions" to encompass any otherwise allowable deductions incurred while conducting such activities. This ensures that all related expenses are subject to the same limitation. The amendments made by this legislation are set to take effect for taxable years beginning after December 31, 2025 .