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Bill

SB 226

Allowing an itemized deduction for certain losses from wagering transactions for individuals for income tax purposes.

2025-2026 Regular Session

Kansas bill permits itemized deductions for gambling losses against winnings on state income taxes, reducing tax liability for gamblers but potentially lowering state revenue.

Died in Committee
#taxation
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WeVote Research Nonpartisan
Bill Summary · SB 226

Legislative bill overview

SB 226 would allow Kansas taxpayers to deduct gambling losses against gambling winnings on their state income tax returns. Currently, Kansas tax code does not permit itemized deductions for wagering losses, meaning individuals must report all gambling winnings as income without offsetting deductions for losses. This aligns Kansas with federal tax treatment, where gambling losses can be deducted (though only to the extent of gambling winnings).

Why is this important

This change affects both individual tax liability and state revenue. Gambling losses are a significant deduction for frequent bettors in Kansas, which has expanded gaming options in recent years. The fiscal impact depends on how many individuals claim such deductions and the aggregate dollar amounts involved—potentially reducing state tax revenue, though the magnitude is unclear without actuarial data.

Potential points of contention

  • Revenue impact: The bill could reduce state income tax collections, with costs depending on participation rates among Kansas gamblers; the bill provides no fiscal note estimate.
  • Equity concerns: This primarily benefits higher-income individuals who gamble significantly enough to track and document losses, potentially concentrating the tax benefit among wealthier taxpayers.
  • Administrative burden: Requires tax filers to maintain documentation of all gambling losses and winnings; state revenue agencies must verify claims against casino and betting platform records.

Compiled from official sources — confirm details with the bill’s official record.

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