TLDR
- Rep. Dina Titus wants the FAIR BET Act passed before Congress adjourns.
- The bill would restore the 100% gambling loss deduction.
- A 2025 law cut the deduction to 90% of losses.
- The bill cleared the House Ways and Means Committee 38 to 5.
- Democrats take control of the House in January.
Gamblers who break even for the year can still owe federal tax under current law. Nevada Congresswoman Dina Titus wants Congress to change that before lawmakers leave for the year.
Titus sent a letter to House Speaker Mike Johnson and Majority Leader Steve Scalise. She asked them to add her FAIR BET Act to any major spending bill or other legislation that must pass before the session ends.
The request comes as lawmakers return from recess for the final weeks of the current term. News 3 Las Vegas first reported the letter.
How the 90% Rule Works
The FAIR BET Act stands for the Fair Accounting for Income Realized from Betting Earnings Taxation Act. It would repeal a provision in the One Big Beautiful Bill Act, which became law in July 2025.
That provision cut the share of gambling losses taxpayers can deduct from 100% to 90%. Before the change, gamblers could deduct all of their losses up to the amount of their winnings. Losses above winnings were never deductible.
Under the current rule, a person who reports $100,000 in winnings and $100,000 in losses still has $10,000 in taxable income. Under the old rule, the full deduction would have erased that amount. The gambler now owes tax on money they did not actually gain.
Titus says the limit treats professional gamblers and casual bettors the same way. She also warns it could push players toward offshore betting sites that offer weaker consumer protections.
The congresswoman said the policy could reduce domestic tax revenue and discourage investment in the gaming industry. She added that it could put jobs tied to the industry at risk.
These concerns carry extra weight in Nevada. Casinos and other gambling businesses make up a major part of the state’s economy.
A Long Path Through Congress
Titus first introduced the bill in July 2025, shortly after the One Big Beautiful Bill Act passed. Since then, she has tried several ways to overturn the cap. None has yet produced a full House vote.
One approach was to attach the measure to larger legislation. In September 2025, the House Rules Committee refused to add it to the National Defense Authorization Act.
In February 2026, Titus filed a discharge petition to skip the committee process and bring the bill straight to the House floor. The petition did not reach the 218 signatures needed to force a vote.
The bill made progress this September, when the House Ways and Means Committee approved it by a vote of 38 to 5. The vote drew support from both parties.
Even so, the measure still needs to pass the full House. Its timing now depends on the Republican leaders who control the chamber’s schedule.
Democrats are set to take control of the House in January after winning the midterm elections this month. If GOP leaders do not act before the session ends, Titus may revive her push under the new Democratic majority.
