U.S. Representative Dina Titus (D-NV) remains steadfast in her efforts to fully reinstate the federal gambling loss deduction by advocating for the advancement of her FAIR BET Act in the House Ways and Means Committee.
The FAIR BET Act introduced by Titus aims to restore the IRS tax provision that allowed gamblers to deduct 100% of their losses against winnings for federal tax purposes.
The One Big Beautiful Bill (OBBBA) signed into law by President Donald J. Trump on July 4, 2025, reduced the gambling write-off to 90%.
This change in tax policy means that a gambler who wins $100,000 but also loses $100,000 would still be taxed on $10,000 of phantom income. Titus continues to advocate for the restoration of the deduction to 100%.
As Ways and Means considers an onslaught of new tax bills this week, I urge my colleagues to include a fix to restore the 100% tax deduction for gambling losses,” Titus said.
“We just need to get this done. I will not stop fighting until we finally see this over the finish line,” stated the House representative from Las Vegas.
The Ways and Means Committee is scheduled to review two bills related to digital currencies and the trading of crypto-based assets.
Bipartisan Support
There has been bipartisan support for restoring the gambling deduction, with 11 Republicans and 14 Democrats joining Titus in sponsoring the FAIR Bet Act.
In the Senate, Senator Catherine Cortez Masto (D-NV) introduced a similar bill, the FULL HOUSE Act, with support from Republican Senator Ted Cruz. Cruz emphasized the importance of restoring the gambling deduction for fairness in taxation.
Despite the introduction of the FAIR Bet and FULL HOUSE acts more than a year ago, neither bill has progressed to a floor vote. Senate Republicans blocked FULL HOUSE mainly due to procedural concerns, as tax bills are required to originate in the House.
Why Have Republicans Blocked Restoration?
The Senate Finance Committee included the gambling deduction reduction in the One Big Beautiful Bill to prevent tax evasion by high-stakes gamblers. By setting the limit at 90%, they ensure that these gamblers pay a minimum tax to the federal government.
While Ways and Means Committee Chair Jason Smith supports the 100% restoration, he favors Rep. Andy Barr’s WAGER Act, which also aims to restore the deduction fully. However, the WAGER Act has not been scheduled for consideration more than a year after its introduction in July 2025.
With Congress dealing with various pressing issues, such as defense, appropriations, and crypto bills, the issue of gambling tax relief has been placed on the backburner.