Nevada Rep. Dina Titus is pressuring House Republicans to fix a gambling tax rule that could leave bettors paying taxes despite making no profit. Rep. Titus recently sent a letter to congress, asking them to restore the full gambling loss deduction before the end of 2026. Although the proposal has bipartisan support, it still hasn’t reached a vote in the full House.
Titus sent her letter to House Speaker Mike Johnson and Majority Leader Steve Scalise, urging them to include the tax correction in legislation that Congress must pass before the end of the year. She wants lawmakers to act quickly rather than leave gamblers facing uncertainty heading into tax season.
In her official statement, Titus argued that the change would correct an unfair provision while protecting the regulated gambling industry. She believes the current rules punish bettors who haven’t actually made money and could discourage participation in legal gambling markets. That would be problematic because it could entice them to join offshore betting sites, which do not have the same consumer protections in place, putting them at risk.
The issue dates back to President Donald Trump’s One Big Beautiful Bill Act, which became law in July 2025. A provision reduced the amount of gambling losses taxpayers can deduct from 100% to 90%, beginning with the 2026 tax year.
Under the current IRS rules, an eligible taxpayer who records $100,000 in gambling winnings and $100,000 in losses could deduct only $90,000. That leaves $10,000 in taxable gambling income even though the bettor finished the year without making a profit.
Titus introduced the FAIR BET Act in July 2025 to reverse the deduction change. The proposal gained momentum in September when the House Ways and Means Committee approved a broader tax package containing the correction by a 38-5 vote.
The legislation still needs approval from the full House and Senate before reaching President Trump’s desk. Titus wants Republican leadership to bring the measure forward or attach the correction to another bill that has a better chance of passing.
Nevada Rep. Steven Horsford has also been pushing for action. During October’s Global Gaming Expo in Las Vegas, Horsford urged Congress to reverse the tax change, raising concerns about its impact on gamblers and the state’s casino industry.
The issue had already gained traction in September when a House committee considered the gambling tax fix as part of a larger legislative package. However, that progress hasn’t resulted in a final vote.
The biggest concern is how the reduced deduction could affect gamblers who regularly place large wagers. Professional bettors and high-volume players can accumulate substantial winnings and losses throughout the year, even when their actual profits are relatively small. Under the current rules, they could face higher tax bills despite having minimal net earnings.
For now, the 90% deduction remains in place for the 2026 tax year. Congress could still reverse the change after December 31, but Titus wants the issue resolved before taxpayers begin preparing their returns. It remains to be seen whether this recent push can build momentum for these changes to be made.
