Nevada’s Titus Proposes FAIR BET Act to Address Gaming Industry Taxes in 2026 NDAA

Titus first brought forward the FAIR BET Act on July 7 before the House Committee on Ways and Means in response to President Donald Trump’s recently passed One Big Beautiful Bill Act (OBBBA). Signed into law on July 4, the OBBBA altered long-standing tax treatment of gambling losses by reducing allowable deductions from 100% to 90%. Under the new rules, even losing bettors could face tax liabilities at year’s end — a change that has drawn sharp criticism from stakeholders across the gaming industry.

Titus’ proposal, filed as H.R. 4304, is strikingly simple. The one-line measure would amend the OBBBA “by striking ‘90 percent’ and inserting ‘100 percent,’” effectively restoring the full deductibility of wagering losses. The legislation remains in the Ways and Means Committee with support from 10 co-sponsors.

While attaching a tax-related measure to a defense bill may appear unconventional, the strategy is not unprecedented in gaming legislation. Nearly two decades ago, the Unlawful Internet Gambling Enforcement Act (UIGEA) was passed as a last-minute addition to the SAFE Port Act of 2006, with many lawmakers later admitting they were unaware they had signed a bill that reshaped the online poker landscape. The example underscores why the NDAA, a “must-pass” annual defense package, offers an effective pathway for measures like the FAIR BET Act.

Titus formally submitted her amendment to the Rules Committee for H.R. 3838 — the Streamlining Procurement for Effective Execution and Delivery and National Defense Authorization Act for Fiscal Year 2026.

“The bill mostly relates to defense matters, but does contain other legislative priorities that members submit,” Titus’ office said in a statement. “We do not know when the bill will be heard by the Rules Committee or voted on by the full House, but expect it to be in the coming weeks.”