Lawmaker Makes Effort to Restore 100% Gambling Tax Loss Code

Nevada representative Dina Titus penned a letter to Representative Jason Smith, Chairman of the Ways and Means Committee, requesting that her FAIR BET Act be added to the committee’s docket before the year-end deadline.

Bad Beat for Bettors

Ever since President Trump signed his One Big Beautiful Bill into law, one of the clauses struck Nevada Representative Dina Titus like a punch to the gut. The new federal budget, set to take effect on January 1, 2026, will decrease the tax write-off gamblers can take from 100% to 90%.

Although that may not affect many people, those legislators whose economy is fueled by gambling believe it could have a deleterious effect and drive gamblers into the arms of offshore operators or local bookies. Gamblers provide the money to build those ornate casinos found in Las Vegas and elsewhere throughout Nevada, and Titus would like the status quo of 100% tax losses restored.

And because of this, she sponsored the FAIR BET Act, which would restore the 100% gambling deduction, and she tried to piggyback it on the National Defense Authorization Act (NDAA). However, it was dropped, and she expressed her disappointment on X earlier this year.

“Unfortunately, the GOP-controlled Rules Committee did not accept the FAIR BET Act as an amendment to the NDAA. This was an easy fix that should have been adopted. Nonetheless, I will continue to build support to restore the 100% gambling loss deduction.”

Push for Stand-Alone Legislation

Many believed it would have a decent chance of passing as a stand-alone bill, but as we get closer to the New Year, urgency is taking hold, and Titus is once again fighting for constituents in the Silver State.

Senator Catherine Cortez Masto, also of Nevada, has sponsored a similar bill, stating, “Taxing people on money they don’t have will stifle the tourism industry in states like Nevada, push poker tournaments offshore, and drive betting into underground, unregulated markets. There is bipartisan support to fix this mistake, and it is time for my colleagues in both parties and chambers of Congress to get it done.”

Last Ditch Attempt

Representative Titus understands time is of the essence with the new tax code set to launch in only a matter of weeks. She has rekindled the FAIR BET Act and posted on X the following:

“Today I am urging @WaysMeansCmte Chairman @RepJasonSmith to place the FAIR BET Act on the committee calendar. Now is the time to fix the unfair 90% tax deduction for gambling losses that negatively impacts professional and casual players. See my full letter to the Chairman below.”

Ironically, the man who created the bill is contemplating rescinding the portion that is most near and dear to Titus and her fellow Nevada lawmakers. President Trump was asked about the stated decrease that could dampen gambling activity in Nevada and throughout the nation.

“We have no tax on tips, we have no tax on Social Security, and we have no tax on overtime,” Trump said in response to a question from a reporter aboard Air Force One on Tuesday, per Fox Business. “No tax on gambling winnings? I don’t know. I’m gonna have to think about that.”

Bookmakers Review will continue to monitor this story as it unfolds.