Dina Titus Urges Congress to Restore Full Gambling Loss Tax Deduction

US Rep. Dina Titus wants Congress to restore the 100% gambling loss tax deduction before the end of 2026, warning that current rules could hurt regulated gambling operators and taxpayers.

Good to know

• The 2026 federal gambling tax rules limit deductible losses to 90%, down from 100%.
• The FAIR BET Act passed the House Ways and Means Committee by a 38-5 vote in September.
• Titus wants lawmakers to include the tax correction in legislation Congress must pass before year-end.

Gambling Tax Rules Could Create Bills Without Profits

Under the revised tax code, a gambler with $100,000 in winnings and $100,000 in losses can face federal income tax on $10,000 despite breaking even.

The One Big Beautiful Bill Act introduced the 90% deduction limit, which took effect for the 2026 tax year.

For individual taxpayers, gambling losses generally require itemized deductions and cannot exceed gambling winnings. The new rule further limits those deductions to 90% of losses.

Titus argues that the change could discourage betting through licensed operators.

She warned that the restriction “unfairly burdens professional gamblers and casual players alike and will inevitably drive players toward offshore and unregulated markets where consumer protections are nonexistent, thereby undermining responsible gaming efforts nationwide. This will further reduce tax revenue and stifle investment by the industry here at home, costing jobs and impacting ancillary businesses.”

The Nevada Democrat represents a district covering the Las Vegas Strip, where casino employment and gaming investment play important economic roles.

FAIR BET Act Still Needs Congressional Approval

Despite bipartisan support, the Fair Accounting for Income Realized from Betting Earnings Taxation Act, or FAIR BET Act, has not reached a full House vote.

Titus introduced H.R. 4304 on July 7, 2025, seeking to reverse the gambling deduction change. The House Ways and Means Committee approved the bill in September by 38 votes to five.

However, House leadership must still schedule a vote. The proposal would also need Senate approval and presidential authorization before becoming law.

Titus contacted House Speaker Mike Johnson and Majority Leader Steve Scalise on November 5, asking them to attach the correction to essential year-end legislation.

“As Congress returns from recess and turns to end-of-year legislation, I respectfully urge Leadership to expeditiously bring a gambling loss deduction fix to the House floor and include it in a must-pass legislative vehicle,” she wrote.

She also argued that restoring full deductions would provide greater certainty for gamblers and licensed gaming businesses.

Congress has only weeks remaining before the current session ends. Without action, the 90% rule will remain in place, although lawmakers could reconsider the proposal in 2027.

FAQ

What is the gambling loss tax deduction for 2026?

Federal rules generally allow eligible taxpayers to deduct up to 90% of gambling losses, limited to their gambling winnings.

What would the FAIR BET Act change?

The legislation would restore the previous 100% gambling loss deduction, subject to existing tax requirements.

Has Congress passed the FAIR BET Act?

No. The House Ways and Means Committee approved the proposal, but the legislation still requires further congressional action.

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