Nevada Rep. Dina Titus has introduced legislation aimed at restoring gamblers’ ability to fully deduct their losses against winnings for tax purposes.
The Fair Accounting for Income Realized from Betting Earnings Taxation (FAIR BET) Act would reverse a provision in recent tax legislation that limits loss deductions to 90 percent of gambling winnings.
Titus, who co-chairs the Congressional Gaming Caucus, is responding to changes that shocked the gambling industry when implemented. Under current rules, a gambler who wins $1 million but loses the same amount during a calendar year would still face taxes on $100,000.
“The recently passed budget bill included a provision inserted by Senate Republicans without consent of the House that imposed a tax increase on Americans who gamble by reducing from 100 percent to 90 percent the amount of losses they can deduct from gambling winnings for their income taxes,” Titus said in a statement.
She added that her legislation “would rightfully restore the full deduction for losses so gamblers don’t pay taxes on money they haven’t won.”
California Democratic Rep. Ro Khanna has signed on as a co-sponsor of the bill.
“The Republican budget would kneecap sports and gambling by making Americans pay taxes on gambling losses,” Khanna told Newsweek. “This is deeply unfair. I’m proud to introduce the FAIR BET Act with Rep. Titus to restore the 100% tax deduction for gaming losses.”
The American Gaming Association, the industry’s leading lobbying organization, has expressed support for the legislation.
“The American Gaming Association applauds Congresswoman Titus for introducing the FAIR BET Act. We are committed to working with Congresswoman Titus, other congressional leaders, and the Trump Administration to restore the long-standing tax treatment of gaming losses,” the AGA said in a statement.
Rep. Troy Nehls of Texas has become the first Republican to co-sponsor the bill, marking a bipartisan effort to address the tax issue.
“While I proudly voted for the One Big Beautiful Bill Act, which prevents the largest tax hike in American history, the Senate’s version contained a provision that I strongly disagree with,” Nehls told Newsweek.
The legislation aims to restore tax treatment that had been standard practice before the recent changes were implemented.
