Nevada Rep. Dina Titus is asking a House committee to quickly consider a bill that aims to reverse the gambling tax deduction change put into effect by the One Big Beautiful Bill Act (OBBBA).
In a letter to House Ways and Means Committee Chairman Rep. Jason Smith, Titus requested that the committee consider her Fair Accounting for Income Realized from Betting Earnings Taxation Act (FAIR BET Act) during its next business meeting.
90% cap on gambling loss deductions takes effect Jan. 1
The FAIR BET Act seeks to reverse the change made by the OBBBA that mandates that only 90% of a gambler’s total wagering losses in a taxable year can be deducted from gambling winnings. Currently, gamblers in the U.S. are allowed to deduct 100% of gambling losses from winnnings.
“While the change may appear minor, it will have significant and harmful consequences,” said Titus said in her letter to Smith and ranking committee member Rep. Richard Neal. “It unfairly burdens professional gamblers and casual players alike and will inevitably drive players toward offshore and unregulated markets where consumer protections are nonexistent, thereby undermining responsible gaming efforts nationwide.”
Titus’ FAIR BET Act proposes keeping the same gambling deduction plan that has been in place for over 60 years by changing the Internal Revenue Code to replace the OBBBA’s 90% deduction rule with 100%. The OBBBA is set to go into effect in 2026, leading Titus to ask the House Ways and Means Committee to quickly consider her FAIR BET Act. The committee last met on Dec. 10 and has yet to set a date for its next business meeting.
The tentative adjournment date for the year is Dec. 19, giving Congress less than two weeks to consider the FAIR BET Act.
Valiant effort by Titus to pass the FAIR BET Act
Titus originally introduced the FAIR BET Act in July as the first piece of legislation aimed at reversing the gambling loss deduction change. The measure has received bipartisan support and backing from the American Gaming Association and operators, including DraftKings and FanDuel, but it has yet to make legislative progress.
Titus attempted to attach the FAIR BET Act to the National Defense Authorization Act (NDAA) in August, which provides a framework for national security and defense policies. Titus’ attempt to attach the FAIR Bet Act to the NDAA was rejected a month later by the Republican-majority House Rules Committee, which considered over 300 amendments.
According to estimates from the Joint Committee on Taxation, the change in how gamblers are taxed is supposed to produce $1 billion in additional revenue over an eight-year period, equating to around $137.5 million per year. The bill allows the federal government to generate additional revenue, but at the expense of the gaming industry.
American Bettor’s Voice board member Adam Robinson projects that the current Senate version of the OBBBA can result in $18 billion in annual handle loss for sportsbooks alone, with 1.5 billion in annual lost gross gaming revenue overall.
