With time running out before a new gambling tax rule takes effect on January 1, 2026, Rep. Dina Titus (D-Nev.) has called on the House Ways and Means Committee to fast-track a hearing on her FAIR BET Act. The bill would reverse a recent change to the taxation of gambling losses in the United States.
In a December 11 letter sent to Committee Chair Jason Smith (R-Mo.) and Ranking Member Richard Neal (D-MA), Titus requested an expedited hearing on her Fair Accounting for Income Realized from Betting Earnings Taxation Act, also known as the FAIR BET Act. The bill would restore the long-standing rule allowing gamblers to deduct 100% of their losses against winnings when filing federal income taxes.
Titus’s request comes months after Congress passed the Senate version of the One Big Beautiful Bill Act, which included a provision capping gambling loss deductions at 90%. While the change may seem small, Titus has pointed out that it could harm both professional and casual bettors.
On December 8, Poker Hall of Famer and 10-time World Series of Poker bracelet winner Erik Seidel posted on X that the tax change could push him into semi-retirement.
“While the change may appear minor, it will have significant and harmful consequences,” Titus wrote, arguing that the new cap effectively taxes gamblers on money they never actually won. She also warned that the policy could encourage bettors to shift “toward offshore and unregulated markets where consumer protections are non-existent, thereby undermining responsible gaming efforts nationwide.”
Since its introduction in July, the FAIR BET Act has stalled procedurally, including a failed attempt to attach it to the National Defense Authorization Act. She’s now urging the Committee to consider it at its next meeting. Titus’s request comes just a couple of days after President Donald Trump sidestepped questions about whether he would support changes to the gambling loss deduction provision included in the One Big Beautiful Bill Act.
What the FAIR BET Act Would Change
Under current federal tax law, gamblers must report all their winnings from wagers as income, but they can also deduct losses up to the amount of those winnings. What that has meant is that a bettor who broke even in a year could deduct 100% of their losses and wouldn’t owe any federal income tax on their gambling activity.
The One Big Beautiful Bill Act changes all of that by limiting deductions to 90% of annual losses. As a result, a bettor could owe taxes even in a year where they didn’t make a net profit and in some cases, even when they finish the year with an overall loss.
The FAIR BET Act would undo those changes, restoring the full loss deduction and returning gambling taxation to the structure that has been in place for decades. In July, Titus said this about the bill’s goal: “My FAIR BET Act would rightfully restore the full deduction for losses so gamblers don’t pay taxes on money they haven’t won.”
The legislation has bipartisan support and backing from major gaming stakeholders, including the American Gaming Association and several large casino and sportsbook operators, though it has not yet advanced out of committee.
The post Rep. Dina Titus Pushes for Fast-Track Hearing on FAIR BET Gambling Tax Fix appeared first on CasinoBeats.
With time running out before a new gambling tax rule takes effect on January 1, 2026, Rep. Dina Titus (D-Nev.) has called on the House Ways and Means Committee to fast-track a hearing on her FAIR BET Act. The bill would reverse a recent change to the taxation of gambling losses in the United States.
The post Rep. Dina Titus Pushes for Fast-Track Hearing on FAIR BET Gambling Tax Fix appeared first on CasinoBeats.