Rep. Dina Titus Continues the Fight for Full Federal Gambling Loss Deduction

Nevada Rep. Dina Titus is not backing down from her fight to restore the full federal deduction for gambling losses. She is urging members of the House Ways and Means Committee to act as they consider a new round of tax legislation. Her FAIR BET Act still faces an uphill battle, as it competes for congressional attention with defense spending and cryptocurrency measures. Current Rates Could Lead to Unfair Taxes Titus has spent more than a year trying to win support for her cause. The bill would undo a provision introduced with the One Big Beautiful Bill Act, signed by President Donald Trump on July 4, 2025. This sweeping law reduced the federal deduction on gambling losses from 100% to 90%. Titus argues that the change could leave gamblers paying taxes on money they never earned. Under the current rules, a bettor who wins $100,000 from gambling in a tax year and loses $100,000 would have no net profit, but would end up with $10,000 of taxable gambling income. This discrepancy has become the central argument of Titus’ campaign. She argues that the tax system should measure what players actually keep, rather than treating losses as income. The FAIR BET Act enjoys strong bipartisan support. The FULL HOUSE Act, proposed by Democratic Senator Catherine Cortez Masto of Nevada, also aims to reinstate the deduction. Supporters argue that this is a matter of fairness, as gamblers should be taxed on their real winnings. However, neither measure has received a floor vote. A Lack of Political Will Makes the Matter Increasingly Uncertain The 90% rate was originally designed to prevent high-stakes gamblers from using gambling losses to offset taxable winnings. However, Titus argues that the rule has unintended consequences. Senate GOP leaders still blocked efforts to restore the 100% rate on procedural grounds, arguing that tax-related legislation should come from the House. The House Ways and Means Committee has not yet addressed the FAIR BET Act. While committee chairman Jason Smith previously noted that he supports a return to the 100% deduction, he favored the WAGER Act introduced by Rep. Andy Barr in July 2025. Even so, that bill has also not yet received a committee vote, casting doubt on the House’s motivation to pursue the subject. I urge my colleagues to include a fix to restore the 100% tax deduction for gambling losses. I will not stop fighting until we finally see this over the finish line. Rep. Dina Titus Despite these setbacks, Titus’ efforts for a fair gambling ecosystem continue. She also backed the Fair Markets and Sports Integrity Act, which would restrict prediction markets from offering sports-related contracts. Titus argues that states should maintain their authority over all forms of wagering. For now, however, the gambling loss deduction remains her immediate concern.