Dina Titus’ FAIR Bet Act Faces Setbacks but Fight Continues
Congressional Setback for Dina Titus on Gambling Tax Reform
Congresswoman Dina Titus from Nevada has encountered a significant roadblock in her efforts to amend a controversial gambling tax regulation. Recently, the House Rules Committee opted not to advance her proposed legislation, the Fair Accounting for Income Realized from Betting Earnings Taxation (FAIR Bet) Act, as an amendment to the National Defense Authorization Act (NDAA). This decision has delayed progress on the bill.
Understanding the FAIR Bet Act and Its Goals
The FAIR Bet Act aims to reverse a change introduced during former President Donald Trump’s administration, which reduced the allowance for gambling loss deductions from 100% to 90%. Starting from the 2026 tax year, this adjustment means gamblers could be taxed even if their net gambling outcome is zero. For example, a person winning $50,000 but losing an equivalent amount would still face taxes as if they earned $5,000.
Representing the Las Vegas district, Titus has strongly opposed this change, labeling the restoration of the full deduction as a straightforward correction. She has accused Republicans of blocking her amendment and remains determined to push for full reinstatement of the previous deduction rules.
The House Rules Committee’s rejection of the FAIR Bet Act represents another hurdle for the legislation, which Titus initially introduced in July. The bill is currently under consideration by the House Ways and Means Committee, with bipartisan support and endorsements from several lawmakers. Jason Smith, the committee chair and a Republican from Missouri, has expressed backing for lifting the deduction cap, noting that this issue was part of the Trump-era tax plan supported by Senate Republicans.
Industry Reactions and the Broader Debate
The gambling community has voiced strong opinions about this tax policy. Organizations such as the American Gaming Association warn that taxing so-called “phantom income” could drive players to illegal offshore gambling sites, potentially harming states dependent on casino revenues. Critics argue the policy unfairly impacts both casual and professional gamblers who comply with tax regulations.
On the other side, proponents of the deduction cap highlight the potential for increased federal revenue. The Joint Committee on Taxation estimates that reducing allowable gambling loss deductions by 10% could raise approximately $1.1 billion over a decade.
Titus’ Ongoing Efforts and Next Steps
Titus attempted to advance her bill by tying it to the NDAA, a strategic move often used by lawmakers to pass measures that face legislative delays. The defense bill, allocating $925 billion for military funding in 2026, is considered must-pass legislation. Despite this tactic, the Rules Committee declined to include her amendment.
This marks Titus’ third attempt to move the FAIR Bet Act forward, but she remains resolute in her campaign. With bipartisan support and continued advocacy from industry leaders, the FAIR Bet Act is expected to reemerge in congressional discussions in the near future.
