Congresswoman Dina Titus is urging House leadership to expeditiously bring her fix to the floor
Congresswoman Dina Titus’s provision restoring the 100 per cent tax deduction on gambling losses passed out of committee. She is now urging House leadership to expeditiously bring her fix to the floor.
“After 14 months of fighting to get this commonsense, bipartisan fix through committee, we must now encourage the House to approve this measure before 1 January 2027. This would stop the reduction to 90 percent from taking effect and ensure gamblers across the nation do not pay this tax on phantom money they never won,” Congresswoman Titus said.“Altering the tax code was a ruse in the One, Big, Beautiful Bill at the expense of recreational and professional gamblers. As I have said many times, it must be fixed.”
Congresswoman Titus was the first member of Congress to recognise the injustice of ending the full deduction and introduced her bipartisan FAIR BET Act on 7 July 2025, to correct it. Since then, other measures have been introduced mirroring the language in her bill. The House Ways and Means Committee included one of those measures today in approving H.R. 10357, the Digital Asset Tax Certainty Act.
“I am disappointed it took the House committee so long to take action,” Congresswoman Titus said. “I spoke at a Ways and Means Committee field hearing in Las Vegas in July 2025 to bring the consequences of reducing the deduction to their attention. Over the next several months, I wrote letters to the committee urging it to include the fix in an upcoming package. Nothing happened until now, when the House will be out of session until after the election. The Republican House leadership must bring this provision to the floor, and the Senate must also expeditiously pass it if we are to prevent the tax from taking effect and harming gamblers nationwide.”
Rep. Titus introduced the FAIR BET Act on 7 July as the first piece of legislation to repeal the reduction in gambling loss deductions. Since then, it has attracted strong and bipartisan support from 21 co-sponsors and backing from the American Gaming Association, MGM, Draft Kings, FanDuel, Caesars, Wynn, the Nevada Resort Association, and the National Thoroughbred Racing Association. In addition, there has been an outpouring of support for the legislation by gamblers on social media.
The Fair Accounting for Income Realized from Betting Earnings Taxation (FAIR BET) Act, to give it its full name, would restore the ability for bettors to deduct 100 per cent of their annual losses against their gains.
Titus, a Democrat who said the betting provision was added to OBBA “by Senate Republicans without consent of the House,” brought on Rep. Ro Khanna from California to co-sponsor FAIR BET.
“My FAIR BET Act would rightfully restore the full deduction for losses so gamblers don’t pay taxes on money they haven’t won. This common-sense legislation will bring fairness back to gaming taxation, making sure that gamblers can fully deduct losses when they report their winnings. It gives everyone –from recreational gamblers to high-stakes gamblers — a fair shake. We should be encouraging players to properly report their winnings and wager using legal operators. The Senate change will only push people to not report their winnings and to use unregulated platforms.”
“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, isn’t regulated, doesn’t help with problem gaming, so it’s bad for the industry, as well as for the player.”
The FAIR BET Act, which has bipartisan support from 25 co-sponsors, also has backing from the American Gaming Association, MGM, Draft Kings, FanDuel, Caesars, Wynn, the Nevada Resort Association, and the National Thoroughbred Racing Association. In addition, there has been an outpouring of support for the legislation by gamblers on social media.