Bill Proposed by Congresswoman Titus Secures Backing from the American Gaming Association in an Attempt to Prevent Alterations to the Gambling Tax Law
The Fair Accounting for Income Realized from Betting Earnings Taxation (FAIR Bet) Act, introduced by U.S. Representatives Dina Titus (D-NV) and Ro Khanna (D-CA), aims to restore the full tax deduction for gamblers' losses in the United States.
The FAIR Bet Act, currently in the early stages of legislative consideration, seeks to repeal a provision from the "One Big Beautiful Bill" signed by President Trump, which limits gamblers to deducting only 90% of their losses starting in 2026. This change could significantly impact professional players by forcing them to pay taxes on money they did not earn.
The bill has garnered bipartisan support, with Rep. Troy Nehls (R-TX) recently lending his backing. The American Gaming Association (AGA), which has expressed its commitment to working with lawmakers to restore the full deduction, has also voiced its support for the FAIR Bet Act.
Despite this support, the bill faces challenging odds in Congress due to the political landscape and the legislative process.
The primary goal of the FAIR Bet Act is to amend Section 165(d) of the Internal Revenue Code to allow gamblers to deduct 100% of their losses against their winnings, aligning with previous tax law. By restoring the full deduction, the bill aims to ensure that gamblers do not pay taxes on losses, which could otherwise lead to financial hardship for professional players.
Titus, who represents a district that includes the Las Vegas Strip, has been opposing controversial new tax laws in President Donald Trump's proposed "Big Beautiful Bill" from the outset. She has pledged to find a legal fix for the issue, stating that the new tax provision harms poker players and gamblers.
The bill has received support from the Congressional Gaming Caucus, which Titus co-chairs, and Rep. Troy E. Nehls (R-Texas). Titus launched Fair Bet on Monday and announced it as a "critical fix."
The AGA has committed to working with Titus, other heads of Congress, and the Trump Administration to restore the long-standing tax treatment of gaming losses. Titus encourages players to report their winnings and wager using legal operators to ensure fairness in gaming taxation.
In a Fair Bet statement on her official website, Titus stated that the legislation aims to bring fairness back to gaming taxation. She warned that the new taxes will push people to not report their winnings and to use unregulated platforms.
The gambling provision in the BBB will go into effect in 2026, unless reversed by Congress. The FAIR Bet Act, if passed, will ensure that gamblers can fully deduct their losses when reporting their winnings and prevent them from paying taxes on money they haven't won. The American Gaming Association (AGA) has applauded Titus' bill.
The FAIR Bet Act, with bipartisan support and backed by the American Gaming Association, aims to amend current tax laws and restore the full deduction for gamblers' losses. This amendment, if passed, could prevent professional players from paying taxes on money they did not earn, potentially alleviating financial hardship and ensuring fairness in the business and finance sectors.
Political support for the FAIR Bet Act is noteworthy, as it seeks to reverse a controversial tax provision in the "One Big Beautiful Bill" that was signed by President Trump, which limits gamblers' loss deductions. However, the bill's passage faces challenges due to the political landscape and the legislative process.
