US state reps present bill in bid restore gambling loss deductions
Dina Titus and Ro Khanna have proposed legislation to undo the gambling tax changes in Donald Trump’s One Big Beautiful Act.
US.- The Democrat representatives Dina Titus of Nevada and Ro Khanna of California have proposed legislation to restore full tax deductions for gambling losses. The Fair Accounting for Income Realized from Betting Earnings Taxation (FAIR BET) Act would undo a provision in the “One Big Beautiful Act” (OBBA) that limits deductions to 90 per cent of gambling losses.
Before President Trump signed OBBA into law last week, bettors were allowed to deduct 100 per cent of gambling losses for tax purposes. A provision tucked into the Act would mean that from 2026, gamblers will only be able to deduct 90 per cent of losses, which could result in a tax liability even if they make a net loss.
Titus called the FAIR BET Act “common-sense legislation” thgat would “bring fairness back to gaming taxation.”
“My FAIR BET Act would rightfully restore the full deduction for losses so gamblers don’t pay taxes on money they haven’t won,” Titus said, according to Las Vegas Review Journal. “It gives everyone — from recreational gamblers to high-stakes gamblers — a fair shake.”
She said the government should be encouraging players to properly report their winnings and wager using legal operators, and that the changes “will only push people to not report their winnings and to use unregulated platforms.”
