Gambling Loss Tax Deduction Bill Progresses in House Committee, offering Rep. Dina Titus, D-Nev., an opportunity to urge House leadership for a vote before the year ends.
The committee approved the measure on Wednesday as part of H.R. 10357, the Digital Asset Tax Certainty Act. Titus, who introduced the bipartisan FAIR BET Act on July 7, 2025, emphasized the urgency of House approval before Jan. 1, 2027.
“After 14 months of advocacy to pass this common-sense bipartisan fix through committee, we must push for House approval before Jan. 1, 2027,” Titus said. “This will prevent the reduction to 90% from taking effect and protect gamblers nationwide from paying taxes on phantom winnings.”
90% Cap Origin Story
The reduced deduction stems from the One Big Beautiful Bill signed by President Donald Trump on July 4, 2025, which lowered the gambling loss deduction from 100% to 90%. Titus was the first to challenge this change and has since worked towards a legislative solution.
“The alteration in the tax code was a maneuver in the One, Big, Beautiful Bill to the detriment of both casual and professional gamblers,” Titus stated. “As I’ve emphasized before, it must be rectified.”
Slow Progress in Committee
Titus initially raised concerns publicly during a Ways and Means Committee hearing in Las Vegas in July 2025 and followed up with letters urging the committee to integrate the fix into a broader package. Progress stagnated until the recent committee vote, coinciding with the House recess following the election.
A previous attempt to correct the deduction failed in January, when the House Rules Committee rejected an amendment to an appropriations bill containing the modification. This amendment was one among nearly 70 introduced at the time.
Industry and Senate Support Align
The FAIR BET Act, also known as House Resolution 4304, the Fair Accounting for Income Realized from Betting Earnings Taxation Act, has garnered support from 25 cosponsors. Major industry players such as the American Gaming Association, MGM Resorts International, Caesars Entertainment, Wynn Resorts Ltd., DraftKings, FanDuel, the Nevada Resort Association, and the National Thoroughbred Racing Association have backed the legislation. Additionally, Nevada Democrats Catherine Cortez Masto and Jackie Rosen, along with Senator Ted Cruz of Texas, have cosponsored a companion measure known as the FULL HOUSE Act (Facilitating Useful Loss Limitations to Help Our Unique Service Economy Act).
While House passage is crucial, finalizing the matter requires Senate approval and the signature of President Trump before the 90% cap becomes effective on January 1, 2027.