FAIR BET Act: A Step Forward for Gambling Tax Reform in the U.S.

FAIR BET Act Clears Key Hurdle in Committee

A Nevada congresswoman's effort to restore full tax deductions for gambling losses has cleared a key hurdle. U.S. Rep. Dina Titus, D-Nevada, said her provision to bring back the 100% deduction, known as the FAIR BET Act, passed out of committee Wednesday, after previous efforts fell short.

She's now urging Congressional leaders to bring the measure to the House floor.

"After 14 months of fighting to get this commonsense, bipartisan fix through committee, we must now encourage the House to approve this measure before Jan. 1, 2027," Titus said in a statement. "This would stop the reduction to 90 percent from taking effect and ensure gamblers across the nation do not pay this tax on phantom money they never won."

The Impact of Tax Code Changes on Gamblers and Nevada's Economy 

Last year's reconciliation package, also known as the One Big Beautiful Bill, changed the rules for declaring gambling losses on tax returns, reducing the deduction from 100% to 90%.

That would mean if a person reported winnings of $100,000 and losses of $100,000, they would still owe taxes on $10,000, where under the previous policy, they would not have owed any taxes.

Titus and other members of Nevada's congressional delegation criticized the change, saying it could hurt professional gamblers and casual sports betters and drive them to offshore or unregulated markets.

"At a time of economic uncertainty, my job is to protect Nevadans and their jobs," U.S. Rep. Steven Horsford, D-Nevada, said in a statement Wednesday. “From dealers and housekeepers to restaurant workers and small business owners, families across our state depend on visitors choosing Nevada. This unfair tax puts their livelihoods at risk.”