Dina Titus Pushes FAIR BET Act Through Defense Bill

Tax rules around gambling losses are once again on the table in Washington. Nevada Rep. Dina Titus is leading a push to restore full wagering loss deductions, and she’s tying her FAIR BET Act to one of Congress’s most critical annual measures — the National Defense Authorization Act (NDAA).

Good to Know

• The FAIR BET Act aims to restore 100% wagering loss deductions.
• It counters the One Big Beautiful Bill Act (OBBBA), which cut deductions to 90%.
• Casino CEOs and industry groups are lobbying lawmakers to back the change.

The tax shift comes from President Donald Trump’s One Big Beautiful Bill Act, signed on July 4, which trims gambling loss deductions from 100% to 90% starting in 2026. For casinos, sportsbooks, and players, that means bettors could be taxed on income they never truly won. Industry leaders call the provision unfair and damaging.

Rep. Titus, who co-chairs the Congressional Gaming Caucus, first introduced the FAIR BET Act as a standalone bill on July 7. Her latest move is to attach it as an amendment to the defense budget — a “must-pass” bill that often carries extra measures with it.

“I strongly encourage the Republicans to make this amendment in order when it goes before the House Rules Committee upon our return to Congress next month,” Titus said.

The Road Through Congress

Titus’s amendment has already been submitted to the Rules Committee for review as part of H.R. 3838, the NDAA for fiscal year 2026. A timeline for hearings and floor debate hasn’t been set but is expected soon.

Meanwhile, the original one-line FAIR BET Act, which simply restores the deduction back to 100%, is still sitting in the House Ways and Means Committee with ten co-sponsors. Lawmakers will revisit the measure when Congress returns from recess in September.

Bipartisan Attention and Competing Bills

The gambling tax issue has caught interest across party lines. House Ways and Means chair Rep. Jason Smith noted that both Republicans and Democrats want to address the deduction before the new rules take effect. Some GOP lawmakers even admitted they hadn’t realized the provision was in the OBBBA when it passed.

Other bills with similar goals are also in play, including the WAGER Act from Rep. Andy Barr and the FULL HOUSE Act from Sen. Catherine Cortez Masto.

Industry Pressure Mounts

Support for restoring the deduction has been strong from Nevada’s casino sector and beyond. The Nevada Resorts Association, Governor Joe Lombardo, several tribal governments, and the American Gaming Association (AGA) are backing Titus’s proposal. In a letter to lawmakers, the AGA wrote that taxing “phantom income” penalizes an already heavily regulated industry.

Executives are also making their case in person. MGM Resorts CEO Bill Hornbuckle, Caesars CEO Tom Reeg, and Wynn Resorts CEO Craig Billings have all met with members of Congress to stress how the rule change could hurt both operators and players.

The outcome will hinge on whether lawmakers fold the FAIR BET Act into the NDAA — and if so, gamblers may get their full deductions back before the new tax rules even start.

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