This bill proposes to reinstate specific tax rules concerning wagering losses by amending Section 165(d) of the Internal Revenue Code of 1986. Under the proposed amendment, losses incurred from gambling activities would only be deductible to the extent of the gains realized from those same transactions. Furthermore, the legislation clarifies that the definition of "losses from wagering transactions" encompasses any deductions otherwise allowable under the tax code that are incurred in carrying out such transactions. These changes are slated to take effect for taxable years beginning after December 31, 2025 , aiming to restore prior limitations on gambling loss deductions.