Just days after President Donald Trump signed legislation that changes how sports bettors and poker players are taxed, resistance is underway.
Key Takeaways
- Nevada Representative introduced new legislation on Monday that attacks a key gambling provision in the “One Big Beautiful Bill Act.”
- The new bill would disallow the 90% deduction on 100% of gambling losses and put it back at a 100% subtraction.
- There are concerns that the effect of Trump’s new bill could push bettors to illegal offshore operators.
Nevada Rep. Dina Titus (D) is fighting the key provision of the “One Big Beautiful Bill Act” aimed at the gaming industry. Titus said on Monday that she partnered with California Rep. Ro Khanna (D) and introduced legislation to reverse the new tax code.
I just introduced the FAIR BET Act with @RepRoKhanna to rightfully restore the 100% tax deduction for gaming losses.
— Dina Titus (@repdinatitus) July 7, 2025
I encourage other members to support this critical fix.
“I’m introducing the FAIR BET Act, the Fair Accounting for Income Realized from Betting Earnings Taxation Act, to permanently restore the 100% loss deduction from gambling winnings,” Titus posted. “I welcome all other members to join this common-sense fix.”
Gambling earnings should be taxed at the capital gains rate. It’s not different than buying and selling stocks.
— Dean (@DeanDude33) July 5, 2025
Trump signed a bill on July 4 that changes many areas of U.S. taxation, spending, and cuts. Based on the new tax code, bettors must deduct 90% of their losses against 100% of their gains, and gambling expenses are also consolidated with losses.
Opposing legislation
This fresh taxation comes at a time when bettors and gaming operators are already feeling a squeeze across the industry.
All bettors will feel a larger sting come tax time, and creating this new 10% margin, which previously didn’t exist, could be especially difficult for consistent winners and professionals to overcome.
“No one should have to pay taxes on money they didn’t win,” Titus posted.
There’s concern in the gaming industry that the additional tax could push more customers away from regulated sports betting markets that have legalized in 39 U.S. states since PASPA was overturned in 2018. Instead, bettors, some whom are already facing betting limits and surcharges from sportsbooks, could turn to offshore operators.
“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,” Titus told NewsNation.
Circa Resort and Casino owner Derek Stevens thanked Titus for her action against the bill and also called for the elimination of the excise tax and an increase in the amount of slot winnings required to report.
Thank you Congresswoman Titus. Three things needed:
— Derek Stevens (@DerekJStevens) July 5, 2025
1. Eliminate the .25% Federal Excise tax on sports wagers.
2. Eliminate the 90% deductibility and go back to what worked.
3. Raise the Slot threshold. $2,000 is better than $1,200 but it needs to be $5,000. https://t.co/i9uCt5SF3I
Backing the bill
The OBBB Act was put together by the Senate, where the sports betting tax amendment was added late in the process. It was narrowly approved by a vote of 51-50 before moving to the House of Representatives, where the bill passed by a vote of 218-214.
The American Gaming Association, a trade industry group, recently praised the legislation and its effects on gaming.
“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,” the AGA said in a statement.
The passage of the One Big Beautiful Bill Act significantly enhances our industry’s ability to sustain quality jobs and deliver economic benefits — and we look forward to President Trump’s expected signature. pic.twitter.com/gEvfABL665
— American Gaming Association (@AmericanGaming) July 3, 2025
