Rep. Dina Titus Presses House GOP Leadership to Restore Full Gambling Loss Deductions
Rep. Dina Titus urged House leaders to insert FAIR BET Act language restoring 100% gambling loss deductions into must-pass bills before adjournment. The measure, which passed committee 38-5 after its July 2025 introduction, reverses last year's cut to 90%. Without action, reintroduction is likely under Democratic control in January.
SCCG Take — The 90% cap creates a direct incentive for players to shift to unregulated offshore sites, eroding tax revenue and compliance efforts. Regulated operators need swift restoration of the full deduction to maintain competitive parity.
U.S. Rep. Dina Titus, the Nevada Democrat whose district covers the Las Vegas Strip, has sent a letter to House Speaker Mike Johnson and Majority Leader Steve Scalise urging inclusion of FAIR BET Act language in any must-pass legislation before the current session ends.
Titus is seeking to reverse a change enacted last year that cut the gambling loss deduction from 100% to 90%. The provision, added to the Senate-amended One Big Beautiful Bill Act, requires gamblers to pay taxes on income they never kept.
Mechanics of the Deduction Reduction
Under the revised rule, a gambler reporting $100,000 in winnings and $100,000 in losses would still owe taxes on $10,000. The prior standard produced no net tax liability in that scenario. Titus introduced the FAIR BET Act in July 2025 to restore the full deduction. The bill cleared the House Ways and Means Committee by a 38-5 vote in September and now awaits floor action.
Titus wrote that enactment "would correct an unfair change in the tax code and provide needed certainty to taxpayers, businesses, and regulated gaming markets across the country." She added that the 90% cap "unfairly burdens professional gamblers and casual players alike and will inevitably drive players toward offshore and unregulated markets where consumer protections are nonexistent, thereby undermining responsible gaming efforts nationwide."
The congresswoman further warned that the policy "will further reduce tax revenue and stifle investment by the industry here at home, costing jobs and impacting ancillary businesses," as reported by CDC Gaming.
Outlook Before Adjournment
With the House set to adjourn next month, Titus has asked leadership to move expeditiously. "As Congress returns from recess and turns to end-of-year legislation, I respectfully urge Leadership to expeditiously bring a gambling loss deduction fix to the House floor and include it in a must-pass legislative vehicle," she stated. If the provision is omitted, Titus could reintroduce the measure in January when Democrats assume control following the midterm elections.
The current uncertainty leaves regulated operators exposed to migration of activity offshore while Congress weighs its final actions in the lame-duck period.
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