A Nevada congresswoman, Dina Titus, is urging Republican House leadership to restore full tax deductions for gambling losses before the current Congress ends its session.
Titus has sent a letter to House Speaker Mike Johnson and Majority Leader Steve Scalise, asking them to include provisions from the Fair Bet Act in any must-pass legislation.
“Enactment of this bipartisan provision would correct an unfair change in the tax code and provide needed certainty to taxpayers, businesses, and regulated gaming markets across the country,” Titus wrote.
The issue stems from the One Big Beautiful Bill, which introduced a change to the federal tax treatment of gambling losses. Previously, taxpayers could deduct 100% of their gambling losses against winnings. However, the legislation reduced the deductible amount to 90%.
Under the revised rules, someone reporting $100,000 in gambling winnings and $100,000 in losses would still be liable for taxes on $10,000 in net income. Under the previous system, the two amounts would offset each other, leaving no taxable gambling income.
Critics argue that the change could discourage both professional gamblers and recreational sports bettors from wagering in the regulated US market, potentially pushing some toward illegal and offshore operators.
Following their midterm victories, Democrats will take control of Congress in January. Titus stressed that the Fair Bet Act, which received bipartisan support in committee in September, now requires House leadership to schedule a full floor vote.
Titus, along with fellow members of Nevada’s delegation, previously said they would “continue pressing the issue” through future spending bills or standalone legislation.
The Fair Bet Act failed to advance through required legislative committees on multiple occasions
