FAIR BET Act Brings Back “Common Sense” Gambling Tax Rules

The fight over gambling taxes is heating up in Washington. Nevada Representative Dina Titus introduced the FAIR BET Act on July 7, aiming to undo new tax limits on gambling losses passed under President Donald Trump’s Big Beautiful Bill Act. The bill, reported on in recent days, comes in response to what Titus calls unfair treatment of gamblers in the latest budget legislation.

Good to know

• Titus wants to restore full loss deductions for all gamblers.
• Trump’s law limits deductions to 90% of losses, starting in 2026.
• The FAIR BET Act also targets outdated slot machine reporting rules.

Under the current plan signed by Trump on July 4, gamblers who win and lose the same amount in a year would still owe taxes. For example, someone who won $100,000 and lost $100,000 in 2025 would still owe $10,000 in taxes due to the 90% loss deduction cap.

Titus says that is not fair. “My FAIR BET Act would rightfully restore the full deduction for losses so gamblers don’t pay taxes on money they haven’t won,” she said while announcing the bill. “It gives everyone — from recreational gamblers to high-stakes gamblers — a fair shake.”

The FAIR BET Act proposes reinstating the full tax deduction for gambling losses, something gamblers had prior to the new budget rule. The change would help both casual and professional players who keep detailed records and report their earnings.

Circa Sports CEO Derek Stevens also backed the bill and took it a step further. He has urged lawmakers to remove the federal sports betting excise tax and raise the slot machine reporting threshold back to $2,000. The recent budget bill had cut that threshold to $1,200, a move many in the gaming industry view as outdated and burdensome.

Titus echoed concerns about what tighter tax rules might lead to. She warned that players may stop reporting their winnings or shift to offshore or unregulated betting platforms. “The government should be encouraging players to properly report their winnings and wager using legal operators,” she said.

Representative Ro Khanna has signed on as a co-sponsor of the FAIR BET Act. Titus described the legislation as “common-sense,” signaling hope that it will gain broader support in Congress.

Unless the FAIR BET Act moves forward quickly, Trump’s tax law changes are still on track to take effect in 2026.

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