The FAIR BET Act, a federal proposal aimed at restoring the full 100% tax deduction for gambling losses was officially rejected as an amendment to the National Defense Authorization Act (NDAA) by the GOP-controlled House Rules Committee.
Under current law, gamblers may only deduct losses up to the amount of their winnings, but changes in the 2017 Tax Cuts and Jobs Act narrowed the scope of deductible expenses related to gambling.
For example, if a sports bettor wins $10,000 but spends $12,000 in total wagers, they can only deduct $10,000 in losses. That means they cannot write off the extra $2,000 they actually lost, even though their overall gambling for the year put them in the red.
The FAIR BET Act seeks to reverse those restrictions, ensuring that individuals can fully offset their gambling winnings with documented losses. Supporters argue that the measure would create fairer tax treatment for recreational and professional gamblers, while opponents raise concerns about its potential impact on federal revenue.
Even after being amended and reintroduced, the FAIR BET Act was blocked by the GOP-controlled House Rules Committee, which decides whether amendments reach the floor. Republican leadership chose not to allow the measure to move forward as part of the NDAA.
The rejection reflects both political and fiscal concerns. Republicans view the existing 90% cap on gambling-loss deductions as a revenue safeguard and argue that rolling it back would reduce federal tax receipts. House leadership also tends to avoid attaching unrelated amendments to high-profile bills like the NDAA, preferring to keep the legislation streamlined.
Adding to the resistance is a divided response from outside groups. While organizations such as the American Gaming Association have called for restoring the full deduction, other voices, including some conservative advocacy groups, argue that gambling losses should not be deductible at all. This split has made it easier for GOP lawmakers to stand firm against the proposal.
The most likely path forward for the FAIR BET Act is through reintroduction as a standalone bill or by attaching it to future tax or budget legislation, where the deduction issue is more directly relevant.
Supporters, including gaming industry groups, are expected to keep lobbying Congress to restore the full 100% gambling-loss deduction. With bipartisan interest in fair tax treatment for both recreational and professional gamblers, there is still a chance to advance in upcoming sessions. However, its prospects will depend heavily on the political balance in Congress and ongoing debates over federal revenue priorities.
Rep. Dina Titus has pledged to continue advocating for the FAIR BET Act. She could reintroduce the FAIR BET Act as a standalone bill at any time during the current Congress, with the earliest opportunity likely in late 2025. The most significant window, however, will come in 2026, when many provisions of the 2017 Tax Cuts and Jobs Act are set to expire. That large-scale tax debate is expected to reopen discussions on deductions, giving the FAIR BET Act a stronger chance to advance.
