Dina Titus Says Gambling Tax Cap Threatens Nevada’s Regulated Market

Nevada Congresswoman Dina Titus is taking her fight against a controversial change to federal gambling tax rules straight to the people most affected. On Monday night, she brought together professional gamblers, gaming industry experts, and community members at Las Vegas City Hall to push for her bill, the FAIR BET Act—a measure aimed at restoring full gambling loss deductions for U.S. players.

Good to know

• The new federal rule caps gambling loss deductions at 90% of winnings, down from the previous 100%.
• It was part of the “One Big Beautiful Bill” federal budget package and is projected to raise $1.1 billion over 10 years.
• Critics say the cap could drive players to unregulated offshore markets.

The deduction cap was slipped into the budget package late in the legislative process, and Titus, who represents Nevada’s 1st Congressional District, says it unfairly targets the gambling community. “You always have to look through legislation for things that impact gaming… there’s always a little bit of a prejudice against gaming that we have to be on the lookout for,” she told the audience. “So when the bill came back, we had to go line by line, and sure enough, there was one in there.”

Why Gamblers and Experts Are Concerned

Titus was joined by an expert panel that broke down the potential consequences of the rule. Adam Robinson of American Bettors’ Voice called the cap “fundamentally a fairness issue,” warning that it effectively taxes players on “phantom income.” He stressed that livelihoods could be at risk if professional players are taxed on more than they actually earn.

Becky Harris, a gaming policy expert at the University of Nevada, Las Vegas, and Russell Fox, a tax specialist at Clayton Financial, echoed the concerns. Fox went so far as to call the change “stupid,” arguing it could push gamblers into tax brackets above their actual income and threaten the market for high-stakes bettors—often known as “whales”—who play a key role in sportsbook revenue.

Virginia Valentine of the Nevada Resorts Association also weighed in, warning that such policies risk sending players to offshore or underground betting markets, undermining the regulated industry’s stability.

The audience, made up of roughly 80% professional gamblers, had no shortage of concerns. Many said the rule would force them to rethink their careers. Kevin, a pro from New Jersey who traveled to Las Vegas for the meeting, didn’t mince words: “I might have to change my entire career, or… go offshore, or an extreme example, leave the country.”

Robinson reinforced that sentiment, warning that if the U.S. wants to keep its regulated market competitive, fair tax treatment is essential. “If you want to win the market as an American regulated, you have to give the players an environment that rewards playing in a regulated market, and this unfortunately does the exact opposite,” he said.

What’s Next for the FAIR BET Act

The FAIR BET Act—short for Fair Accounting for Income Realized from Betting Earnings Taxation—seeks to reverse the deduction limit and restore the full 100% loss offset. While the bill already has bipartisan backing, Titus acknowledged that she needs more co-sponsors to move it forward.

“It’s a very simple change, but has a great deal of impact,” she said, promising to keep pushing for the repeal in order to protect Nevada’s gaming industry and maintain a fair playing field for professional and casual bettors alike.

The post Dina Titus Says Gambling Tax Cap Threatens Nevada’s Regulated Market appeared first on iGaming.org.