Date Published: August 28, 2025, at 10:30 AM.
Last Modified: August 28, 2025, at 10:30 AM.
- Dina Titus has incorporated the FAIR Bet Act into the defense spending bill.
- FAIR Bet aims to restore gambling losses up to 100% of total winnings.
- The One Big Beautiful Bill reduced the allowed deduction to 90%.
U.S. Representative Dina Titus (D-NV) is actively championing the Fair Accounting for Income Realized from Betting Earnings Taxation Act, known as the FAIR Bet Act, in Washington, D.C.
Titus proposed the federal initiative in July after the approval of President Donald Trump’s “One Big Beautiful Bill.” This bill included a stipulation that lowered the long-standing bipartisan allowance for 100% gambling loss deductions to 90%, starting with the 2026 tax year—a move attributed to Senate Republicans.
The reduction in the OBBB seemed to catch many Republicans off guard, as Titus’ FAIR Bet Act quickly received support from both parties. Currently, the legislation boasts 10 cosponsors, evenly split between Republicans and Democrats.
House Resolution 4304, the bill in question, is presently in the House Ways and Means Committee, where Chairman Jason Smith (R-MO) has committed to restoring the gambling loss deduction to 100% before it takes effect next year. However, it has yet to be voted on by the committee.
Taking Initiative
In light of the slow progress in the House Ways and Means Committee regarding the FAIR Bet Act, Titus has opted to attach the gambling legislation to Congress’s annual defense spending bill.
“The battle to restore the 100% gambling loss tax deduction is ongoing,” Titus stated on X. “I’ve now introduced the FAIR Bet Act as an amendment to the 2026 National Defense Authorization Act (NDAA).”
Annually, Congress must pass the NDAA, which allocates funding for the U.S. military and essential defense needs. The Senate Armed Forces Committee approved an allocation of $924.7 billion for the 2026 NDAA.
Of this total, $878.7 billion is earmarked for the Department of Defense, while the Department of Energy will receive $35.2 billion, with $10.8 billion allocated for “defense-related activities outside NDAA authority.”
Titus aims to leverage the defense spending bill to fast-track the FAIR Bet Act’s approval.
“I strongly urge Republicans to prioritize this amendment when it reaches the House Rules Committee once Congress reconvenes next month,” Titus stated.
Objectives of the FAIR Bet Act
The FAIR Bet Act aspires to exempt gamblers from federal taxation on unrealized income. The reduction enacted by the OBBB means that a person with $10,000 in slot machine winnings but also $10,000 in losses would face taxes on an additional $1,000.
The Joint Committee on Taxation forecasts that this reduction could yield $1.1 billion in new federal tax revenue over the next decade. However, industry leaders warn that this potential gain is insignificant compared to the risks posed to the legitimized gaming sector.
“Such a situation creates an unjust standard by taxing illusory income and distinctly penalizes a lawful, tightly regulated industry,” commented Bill Miller, President of the American Gaming Association.