FAIR BET Act Stalls but Support for Gambling Deduction Remains

A push to restore the full gambling loss deduction faced a setback this week. The House Rules Committee declined to attach the FAIR BET Act to the must-pass National Defense Authorization Act (NDAA), leaving the proposal in limbo.

Good to know

• The FAIR BET Act aims to reinstate the 100% gambling loss deduction.
• Current law, passed in July’s OBBA bill, reduced the deduction to 90%.
• The policy change could raise $1.1 billion in tax revenue over 10 years.

Nevada Rep. Dina Titus, who sponsored the FAIR BET Act, voiced her frustration after the exclusion. With thousands of amendments competing for space in the NDAA, she suggested politics played a role in the outcome. “It may not have started as a political issue, but it looks like it’s becoming one,” Titus said on social media.

How the Deduction Changed

The roots of the fight trace back to the One Big Beautiful Bill (OBBA), signed into law by President Trump in July. The sweeping legislation included a change that caught many by surprise: gamblers could now only deduct 90% of their losses instead of the full 100% they had been allowed for decades.

That means bettors may end up paying taxes on winnings they never actually kept. For casino hubs like Las Vegas, already facing weaker tourism numbers due to economic uncertainty, the change adds another layer of difficulty. Titus quickly introduced the FAIR BET Act in response, aiming to restore the full deduction.

Revenue vs. Relief

The Joint Committee on Taxation estimated the reduction could generate $1.1 billion over the next decade. While lawmakers see the revenue boost as useful for balancing tax breaks elsewhere, the cut has raised concerns across party lines. Many Republicans were just as surprised as Democrats when the change surfaced in the OBBA.

Still, once a measure is in law, reversing it can be challenging. GOP leaders remain focused on protecting tax incentives tied to the administration’s broader economic strategy.

Not Over Yet

Despite the setback, the FAIR BET Act remains alive. The bill sits with the House Ways and Means Committee, chaired by Rep. Jason Smith, who has expressed sympathy for restoring the deduction.

“For those of you concerned about this change, members on both sides of the aisle have heard you and many members on both sides of the aisle are working to address it before it goes into effect on Jan. 1,” Smith said.

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