Titus Urges House Ways And Means Committee to Advance FAIR BET Act

Nevada Representative Dina Titus is urging the U.S. House Committee on Ways and Means to schedule the Fair Accounting for Income Realized from Betting Earnings Taxation Act (FAIR BET Act) before the end of the year. The legislation aims to amend the Internal Revenue Code regarding wagering loss deductions. Specifically, the bill proposes changing the deduction limit from 90 percent to 100 percent.

Earlier this year, the One Big Beautiful Bill Act (OBBBA) introduced by former President Donald Trump reduced the deductible gambling losses to 90%. As a result, gamblers could face taxes on money they effectively did not gain. For instance, if a gambler wins $100,000 but loses $100,000, only $90,000 in losses could be deducted, leaving them liable for taxes on a supposed $10,000 profit. At the 24% federal tax rate, this would create a $2,400 tax obligation despite no real profit. Even slightly profitable gamblers are impacted; a $101,000 win against $100,000 in losses would result in a $2,640 tax bill, exceeding actual earnings.

The FAIR BET Act seeks to reverse this reduction, restoring the full 100% deduction for gambling losses. Titus stated earlier this year that she introduced the bill to protect both professional and recreational gamblers, ensuring the deduction reflects actual losses.

Titus has successfully gained bipartisan support, with nine Republican co-sponsors, including Rep. Mike Ezell of Mississippi, who joined on Monday. Despite this cross-party backing, no progress has been made since the bills introduction on July 7, leaving many professional gamblers concerned about their financial future. Critics warn that the OBBBA amendment could severely impact professional gambling and casual bettors alike.

Earlier attempts to advance the FAIR BET Act, such as adding it as an amendment to the National Defense Authorization Act (NDAA), were blocked by the House Rules Committee. Current prospects for the bill remain uncertain, as the House Ways and Means Committee has not scheduled it for consideration. Upcoming subcommittee hearings this week do not involve the FAIR BET Act, signaling that committee leaders would need to actively place it on the calendar for any chance of passage before year-end.

Author: Sophia Brooks