U.S. Rep. Dina Titus introduces bill to reverse gambling loss tax cap

U.S. Representative Dina Titus introduced legislation to restore the full tax deduction for gambling losses, aiming to roll back a change enacted under a recently passed federal budget bill that has drawn criticism from the gaming industry.

The bill, titled the Fair Accounting for Income Realized from Betting Earnings Taxation (FAIR BET) Act, seeks to undo a provision in the One Big Beautiful Bill (OBBA) that limits bettors to deducting only 90% of their gambling losses against winnings on their tax returns. Before OBBA was signed into law last week by President Donald Trump, bettors were allowed to deduct 100% of such losses.

“The recently passed budget bill included a provision inserted by Senate Republicans without consent of the House that imposed a tax increase on Americans who gamble by reducing from 100 percent to 90 percent the amount of losses they can deduct from gambling winnings for their income taxes,” Titus, a Democrat from Nevada, said in a statement.

“My FAIR BET Act would rightfully restore the full deduction for losses so gamblers don’t pay taxes on money they haven’t won,” she added.

Critics of the OBBA provision warn it could result in taxpayers facing liabilities in years when they break even or end up with net losses.

The FAIR BET Act is co-sponsored by Rep. Ro Khanna, a Democrat from California.

“This common-sense legislation will bring fairness back to gaming taxation, making sure that gamblers can fully deduct losses when they report their winnings,” Titus said. “It gives everyone – from recreational gamblers to high-stakes gamblers – a fair shake. We should be encouraging players to properly report their winnings and wager using legal operators. The Senate change will only push people to not report their winnings and to use unregulated platforms.”

The American Gaming Association, the industry’s top lobbying group, expressed support for the legislation, despite having previously welcomed OBBA’s passage.

“The American Gaming Association applauds Congresswoman Titus for introducing the FAIR BET Act. We are committed to working with Congresswoman Titus, other congressional leaders, and the Trump Administration to restore the long-standing tax treatment of gaming losses,” the AGA said in a statement.