Dina Titus Seeks Floor Action On Bill Addressing Gambling Tax Provision

Rep. Dina Titus of Nevada is advancing legislation to change how gambling losses are deducted under current tax law. Proposal targets a provision enacted through the One Big Beautiful Bill Act that reduced allowable deductions.

Good to Know

• Current rule limits gambling loss deductions to 90 percent of winnings.
• Cap can leave bettors owing taxes despite an overall losing year.
• A second bill with similar goals remains under committee review.

The FAIR BET Act, short for Fair Accounting for Income Realized from Betting Earnings Taxation, seeks to reinstate the full 100 percent deduction for gambling losses. President Donald Trump signed the broader spending legislation containing the 90 percent limitation, a change that many in the gaming sector say altered long standing tax treatment.

Because deductions no longer fully offset winnings, some taxpayers face liability even when annual results show net losses. Industry professionals describe that situation as phantom income since taxable figures do not match actual financial outcomes.

Rep. Dina Titus has tried multiple legislative routes to advance the fix. An attempt to add the language to a January spending package did not succeed after the House Rules Committee declined to include the amendment, even with bipartisan backing.

With the House Ways and Means Committee yet to act after months of consideration, Titus filed a discharge petition to force a vote. That mechanism requires support from 218 House members. She said:

“Both high-stakes and hobby gamblers are struggling, and local economies … that depend on gaming revenue are hurting. We need 218 signatures to bring this commonsense fix to the floor. Call your representatives and tell them to sign on.”

Discussion around the deduction limit has circulated widely among poker players, casino operators, and sportsbook stakeholders. Many warn that the structure does not reflect how wagering works, where capital moves continuously across sessions, tournaments, and offsetting bets.

Another proposal addresses the same issue. Rep. Steven Horsford of Nevada and Rep. Max Miller of Ohio introduced HR 6985, known as the FULL HOUSE Act, which also aims to restore the 100 percent deduction. That measure remains stalled in the House Ways and Means Committee.

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