Around the end of the year, with the new tax law coming into effect, I heard some chatter about a potential bright spot -- that the definition of a "session" for IRS purposes might be legally defined as being broader, maybe even to the point of all of a taxpayer's play at one casino (or even a group of casinos owned by the same entity) being considered one session. I believe Bob Dancer wrote a column to this effect. I haven't heard anything about this more recently. What's the status of that theory?
The answer is no, the IRS hasn't officially broadened the definition of a gambling "session" for tax purposes.
The chatter you mention — suggesting that all play at one casino (or even casinos owned by the same company) could count as a single session — appear to stem from speculation by some tax professionals in response to other changes in the tax law vis a vis gambling, but they're not supported by any IRS guidance, regulations, or court rulings.
The big 2025 legislative change, effective for tax years beginning in 2026, capped gambling-loss deductions at 90% of winnings. This has increased the importance of accurate session-level netting and recordkeeping, which is likely where the rumors originated. Some commentators speculated that a broader “establishment-based” or even year-long session might help minimize the impact of the 90% cap.
However, that appears to be wishful thinking. The IRS hasn't adopted or endorsed any such broadening and no new procedures, notices, or regulations have been issued.
Thus, you still need detailed contemporaneous records of winning and losing sessions. W-2Gs, now with a higher $2,000 threshold for 2026, report specific jackpots, but your return should reflect actual session results. If you itemize and deduct (90% of) losses against winnings on Schedule A, log each session’s net win/loss and keep casino statements, tickets, receipts, etc. Poor records can lead to full disallowance of losses on audit.
