Titus urges House to pass FAIR BET Act before session ends
The bill would restore the full federal deduction for gambling losses, which the One Big Beautiful Bill Act limited to 90 per cent.
Key takeaways:
- Nevada Congresswoman Dina Titus asked House Speaker Mike Johnson and Majority Leader Steve Scalise to advance the FAIR BET Act before the current congressional session ends.
- The bill would reinstate the 100 per cent deduction for gambling losses that applied before the One Big Beautiful Bill Act, passed in July 2025, limited it to 90 per cent.
- The House Ways and Means Committee advanced a bipartisan package by 38 votes to five in September, and it will now head to the House floor.
US.- Nevada Congresswoman Dina Titus has renewed her efforts to restore the full federal tax deduction for gambling losses, asking Republican leaders in the US House of Representatives to advance the FAIR BET Act before the current congressional session ends. The proposal would reverse a provision introduced in the One Big Beautiful Bill Act that limits the deduction to 90 per cent of gambling losses.
In a letter to House Speaker Mike Johnson and Majority Leader Steve Scalise, Titus called on the house to include the measure in any major spending package or other legislation that must pass before lawmakers adjourn for the year. The request comes as Congress returns from recess for the final weeks of its current session.
The FAIR BET Act, formally known as the Fair Accounting for Income Realised from Betting Earnings Taxation Act, seeks to reinstate the 100 per cent deduction that applied before the One Big Beautiful Bill Act was passed in July 2025. Under the current rules, taxpayers can deduct only 90 per cent of their gambling losses against their winnings, which means that someone who reports US$100,000 in winnings and an equal amount in losses would still have US$10,000 in taxable income, despite making no net profit. Under the previous system, the full deduction would have offset the winnings.
Titus has argued that the restriction affects both professional gamblers and recreational players. She has also warned that the tax treatment could push customers towards offshore gambling operators, where consumer protections and regulatory oversight may be weaker, and raised concerns about the potential impact on the regulated gaming industry, including lower domestic tax revenues, reduced investment and job losses.
Titus first introduced the proposal in July 2025, shortly after the One Big Beautiful Bill Act established the deduction cap. Since then, she has pursued several routes, including attempts to attach it to broader legislative packages.
Frequently asked questions (FAQs)
- What is the FAIR BET Act? The Fair Accounting for Income Realised from Betting Earnings Taxation Act, or FAIR BET Act, would reinstate the 100 per cent federal deduction for gambling losses. That was the rule before the One Big Beautiful Bill Act, passed in July 2025, limited the deduction to 90 per cent.
- How does the 90 per cent gambling loss deduction work? Taxpayers can deduct only 90 per cent of their gambling losses against their winnings. For example, someone reporting US$100,000 in winnings and an equal amount in losses would still have US$10,000 in taxable income, despite making no net profit.
- Why does Dina Titus want the deduction restored? Titus argues the restriction affects professional and recreational gamblers. She has warned it could push customers towards offshore operators with weaker consumer protections, and raised concerns about lower domestic tax revenues, reduced investment and job losses in the regulated gaming industry.
