Nevada Congresswoman Dina Titus has filed new legislation that would undo the gambling loss tax cap that was signed into law by President Donald Trump last week.
The Senate’s version of the One Big Beautiful Bill Act (OBBBA) added a provision to limit bettors by only allowing them to deduct 90% of their annual losses. Previously, 100% of losses were tax-deductible if gamblers lost more than they won in a single tax year.
Many in the gambling industry decried the measure, with some commenters arguing that it would push big-money bettors towards the black market and threaten the careers of professional gamblers.
On Friday, after Trump signed the OBBBA, Nevada Democrat and Congressional Gaming Caucus Co-Chair Titus vowed to introduce the Fair Accounting for Income Realized from Betting Earnings Taxation Act (FAIR BET Act) as a “common-sense fix” that would permanently restore the 100% loss deduction.
She filed the bill on Monday, July 7, with California Democratic Rep. Ro Khanna as co-sponsor. Titus added on Monday that her bill, which will be considered by the House Ways and Means Committee, has bipartisan support with Republican Congressman Troy E. Nehls no onboard.
The short and simple text of the bill would roll back the tax losses change “by striking ’90 percent’ and inserting ‘100 percent’,” effectively hitting the Undo button on that particular change.
Titus indicates support goes beyond pro gamblers
As it stands, the OBBBA gambling tax deduction change is set to take effect in 2026. Fiscal estimates project it could raise $1.1 billion over eight years for the federal government.
However, numerous industry representatives have spoken out against the measure, which could result in gamblers having to pay tax on gambling activity even if they broke even or ended on a net loss for the year. If a bettor both won $100,000 and lost $100,000 on bets in a tax year, they would have to pay tax on $10,000 of gambling income even though they ended at net zero.
While much of the opposition came from pro gamblers, Titus’ opposition — and the fact she felt strongly enough to quickly file countering legislation — is significant.
“We’re gonna try and take it out,” Titus told News Nation last week, before Trump signed the OBBBA. “If it doesn’t go back to [the] Rules [committee] then we can’t, and then I’ll introduce a separate bill.
“It pushes people into the black market if they don’t do regulated gaming because they have a tax disadvantage. The black market doesn’t pay taxes, it isn’t regulated and doesn’t help with problem gaming. It’s bad for the industry and it’s bad for the player.”
AGA ‘commends’ both Big Beautiful tax change and Titus’ response
On the other hand, the U.S. gambling industry’s leading representative agency gave the OBBBA the thumbs-up.
In a statement posted on Friday, shortly before Trump signed it, the American Gaming Association (AGA) voiced its support for the bill and itx gambling tax deduction limit.
“We commend congressional leaders on the passage of the One Big Beautiful Bill Act,” the AGA wrote on social media in a post for which it disabled the ability to reply. “Our industry’s ability to sustain quality jobs and deliver economic benefits is significantly enhanced by the tax policies of OBBBA that support consumers, encourage business innovation and investment, and strengthen U.S. competitiveness.
“We look forward to President Trump’s expected signing and will work closely with Congress in the coming months to address the changes to wagering deduction losses and further modernize the tax code.”
SBC Americas reached out to the AGA on Monday for further comment on the OBBBA measure, as well as Titus’ FAIR BET Act.
“The American Gaming Association applauds Congresswoman Titus for introducing the FAIR BET Act,” a spokesperson told us. “We are committed to working with Congresswoman Titus, other congressional leaders and the Trump Administration to restore the long-standing tax treatment of gaming losses.”
