A proposal the gaming industry championed to restore gambling loss tax deductions is set for its most high-profile public event yet.
- Titus to spotlight repeal bill at Vegas hearing: Nevada Rep. Dina Titus will promote her FAIR BET Act during a House Ways and Means Committee field hearing in Las Vegas.
- The gambling industry pushes back on tax change: The new 90% cap on gambling loss deductions sparked backlash from gamblers, casino owners, and the American Gaming Association.
- The legislative path remains uncertain: Despite bipartisan support, the bill faces political and procedural hurdles in a Republican-led Congress before the 2026 effective date.
Nevada Rep. Dina Titus announced on social media Wednesday she'll push for her measure at a House of Representatives committee “field hearing” in Las Vegas Friday. The House Ways and Means Committee meeting, which has jurisdiction over the bill, will put a spotlight on legislation that's become a top priority for Titus, professional gamblers and the industry at large.
“Both sides of the aisle support this fix,” wrote Titus, a Democrat, in an X post Wednesday, “and the Ways and Means Committee is the first hurdle to get this through Congress. Let’s get it done.”
Gambling tax deduction sparks concerns
The sweeping federal “One Big Beautiful Bill” signed into law earlier this month lowered gamblers’ potential loss deductions on their taxes.
Before the bill, gamblers itemizing their returns could deduct 100% of their losses against their gains. Congress lowered that figure to 90% as part of a last-minute addition to the measure.
For tax year 2025, a hypothetical gambler that won $110,000 and lost $100,000 could write off 100% of their wins against their losses, meaning they'd only have to pay taxes on the $10,000 they earned in net profit. Under the new law, that same earnings would only let the bettor deduct $90,000 (90%) of the losses, meaning they'd have to now pay taxes on $20,000, or effectively double the 2025 rate.
Americans deserve fair tax policy. That’s why I will be making my case for the FAIR BET Act this Friday in front of @WaysMeansCmte in @Vegas, the gambling capital of the country.
— Dina Titus (@repdinatitus) July 23, 2025
Both sides of the aisle support this fix, and the Ways and Means Committee is the first hurdle to… pic.twitter.com/mU7gPcYFhm
For a break-even or losing gambler, they'd still need to pay taxes even if they hadn’t profited financially from gambling that year. Meanwhile, professional gamblers said this increased tax burden could force them to leave the regulated industry.
Las Vegas casino owner Derek Stevens, professional poker player Phil Galfond and the American Gaming Association are among the prominent voices that publicly championed the restoration of the 100% deduction.
“I don't care if you're a Democrat or a Republican, taxing money that you don't have is just not fair,” Titus said in a video clip of an interview posted with her social media posts Wednesday.
Political challenges remain
Titus, whose district includes the south end of the Vegas Strip, led efforts in Congress and in public to restore the 100% loss. Her bill, the FAIR BET Act, had 10 co-sponsors as of Wednesday, including four Republicans.
That doesn’t mean it's a sure bet to pass.
Congress introduces thousands of pieces of legislation each year, while only a small fraction pass into law. The FAIR BET Act’s bipartisan support may have trouble advancing in the Republican-controlled House and Senate.
Republicans included a 90% gambling deduction late in the OBBB's crafting as a way to offset trillions in lost revenue from the legislation’s tax cuts. Though the bill is projected to generate just $1 billion in new taxes over the next 10 years, Republicans may still want to keep this income stream.
Congress also has limited time and capacity to pass such a measure before it takes effect next January.
The full Congress isn't scheduled to meet until September. Though Friday’s hearing in the Ways and Means Committee could help drum up public support, it would still be weeks before the committee takes a formal vote on the bill.
From there, the legislation also needs to pass the full House and Senate. Proponents hope Congress can include the standalone measure in anticipated technical “correction” bills to the OBBB, but it's just one of hundreds of proposals lawmakers need to consider.
