Nevada Rep. Dina Titus is urging Republican House leaders to fast-track the FAIR BET Act before Congress adjourns for the year, seeking to reverse a federal tax provision that has reduced the amount of gambling losses players can deduct from their taxable income. Titus, whose congressional district includes the Las Vegas Strip, is asking House Speaker Mike Johnson and Majority Leader Steve Scalise to attach the FAIR BET Act to must-pass legislation during the remaining weeks of the congressional session. The proposal would restore the full federal deduction for gambling losses, reversing a change enacted through last year’s One Big Beautiful Bill Act.
The current tax provision limits deductible gambling losses to 90% of reported winnings, compared with the previous 100% deduction. As a result, gamblers could face federal income tax liability even when their overall gambling activity produces no net profit. For example, someone reporting $100,000 in gambling winnings and an equivalent amount in losses could still be required to pay taxes on $10,000 under the current rules. Previously, the full deduction would have eliminated taxable gambling income in that situation.
The FAIR BET Act, formally known as the Fair Accounting for Income Realized from Betting Earnings Taxation Act, was introduced by Titus on July 7, 2025. The legislation, designated H.R. 4304, has received bipartisan support and cleared the House Ways and Means Committee in September by a 38-5 vote. However, it has not yet received a full House floor vote. In a letter to House leadership, Titus argued that the existing tax structure places an unfair burden on both professional gamblers and recreational players. She also warned that the provision could have broader consequences for the regulated gaming industry.
According to Titus, taxing gambling losses that cannot be fully deducted could encourage players to move their activity to offshore and unregulated gambling platforms. Such a shift could undermine consumer protections, responsible gambling initiatives and federal tax revenue. The Nevada congresswoman also raised concerns about the potential impact on domestic gaming companies, including reduced investment and employment opportunities. The consequences could extend beyond casino operators to businesses that depend on the broader gaming industry. Passage of the FAIR BET Act would restore the previous deduction structure and provide greater certainty for gamblers, gaming businesses and regulated markets, Titus argued.
The timing of the request is significant, as lawmakers have only a limited number of legislative days remaining before the expected year-end adjournment. Titus is seeking action before Congress concludes its current session. If House leadership does not advance the FAIR BET Act before adjournment, the legislation could be reintroduced in January. That possibility comes as Democrats are expected to take control of Congress following their victories in the 2026 midterm elections. For now, the measure’s immediate prospects depend on whether Republican House leaders agree to bring the proposal forward as part of the remaining year-end legislative agenda.
