Days after President Donald Trump said he'd “think about” eliminating taxes on gambling winnings, a Nevada Representative implored a House committee to restore 100% deduction on losses.
Rep. Dina Titus wrote a letter to Ways and Means Committee chairman Rep. Jason Smith, asking for the FAIR BET Act to be added to the committee calendar before a year-end deadline.
Key Takeaways
- Titus introduced the bill in July, a few months before the government shutdown.
- A casino and sportsbook owner in Las Vegas said he met with other gambling leaders, all of whom support the bill.
- Changing deductions to 90% could lead to bettors paying taxes on money they didn’t profit from.
While Trump’s recent comments offer hope that winning gamblers can retain a larger share of their profits, his Big Beautiful Bill has already taken from both winning and losing bettors.
The Bill, signed into law July 4, will reduce deductions for gambling losses from 100% to 90%. That means beginning in 2026, bettors who win more than they lose can still have a net-negative year, and that losing bettors could still owe money in taxes.
Titus’ FAIR BET Act would restore the 100% deduction from the “unfair 90% tax deduction ... that negatively impacts professional and casual players.”
Today I am urging @WaysMeansCmte Chairman @RepJasonSmith to place the FAIR BET Act on the committee calendar. Now is the time to fix the unfair 90% tax deduction for gambling losses that negatively impacts professional and casual players. See my full letter to the Chairman below. pic.twitter.com/JJUozMnPTu
— Dina Titus (@repdinatitus) December 11, 2025
The FAIR BET Act was initially referred to the Ways and Means Committee on July 7. The government shutdown started a couple of months later, meaning the bill had no chance of being considered or debated until the shutdown ended Nov. 12.
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Resounding support for FAIR BET
“Support for this fix has been both strong and bipartisan,” Titus’ letter, dated Thursday, reads. “The legislation also enjoys broad industry support, including from the American Gaming Association, MGM, DraftKings, FanDuel, Caesars, Wynn, the Nevada Resort Association, and the National Thoroughbred Racing Association.”
Derek Stevens, owner of Circa Sports and several Las Vegas casinos, posted a nearly two-minute video captioned “90% deductibility doesn’t work” on his X account Thursday, the same day that Titus sent her letter.
Stevens says he had a meeting with CEOs and leaders of major gambling authorities, along with Rep. Jason Smith. He said the government “has a lot of difficult things to deal with, but this should not be one of them.”
“I don’t know a single member of the U.S. House of Representatives or a single U.S. senator that wants this to go into action on Jan. 1,” said Stevens. “We were asked by the chairman of the House Ways and Means Committee, please call your U.S. senator, please call your member of the U.S. House of Representatives; there’s only a few days left ... this change impacts the entire hospitality industry, the tourism industry, all of our employees, which is critical, as well as most of America, which has made a bet in the last year.”
90% Deductibilty doesn’t work. C’mon America!! pic.twitter.com/eKzqEtldbh
— Derek Stevens (@DerekJStevens) December 11, 2025
Why deductions are important
Keeping the deductions at 90% would have a major impact on American sports betting and casino gambling.
An individual who bets $100,000 and wins $100,000, breaking completely even, would not have to pay taxes under the previous structure. With only 90% deductions at play, they could only deduct $90,000, meaning they’d owe taxes on $10,000, despite not making any money from gambling.
On top of the possible negative effects on gambling-rich tourist areas, like Las Vegas, in Titus’ Nevada, there are also fears that bettors will be pushed to illegal offshore platforms.
“While (the new deduction threshold) may appear minor, it will have significant and harmful consequences,” Titus’ letter reads. “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.”
