Nevada Rep. Continues Push for Gambling Tax Reduction With Time Running Out

A U.S. official is continuing to push for a resolution to a “problem that should’ve never been created” that will affect everyone in the gambling industry. 

U.S. Rep. Dina Titus (D-Nevada) on Tuesday afternoon posted a video to her X (formerly Twitter) account pleading with legislators to adopt her FAIR BET Act. The proposal would restore 100 percent tax deductions for gambling losses, the longstanding standard that was stripped by President Trump’s the Big Beautiful Bill.

If the bill is not approved before the end of the year, only 90 percent of gambling losses will be deductible on tax forms.

“Unfair” changes for consumers

Titus’ ties to Nevada, home of the gaming-rich Las Vegas, have led her to be one of the most prominent critics of the Big Beautiful Bill’s new gambling-related change.

The FAIR BET Act, also known as H.R.4304, simply aims to restore 100 percent deductions. Essentially, any money that is lost by gambling cannot be taxed, saving consumers from paying for money they didn’t make.

“The deduction was reduced to 90 percent from 100 percent,” Titus said in her video. “That’s a small numerical change, but it has an outsized real-world consequence. Under this new limit, an individual who wins $100,000 and loses $100,000 in the same year… would still be taxed on $10,000 of income they never actually earned."

The impending change will count for all gamblers, professional and casual, across all forms of wagering: sports betting, casino gaming, online casino, and more. 

President Trump recently said that he would consider eliminating the tax on gambling winnings. However, doing so would only help a small percentage of gamblers who actually churn a profit, and it would still leave them with less money than they’d earn with 100 percent loss deductions. 

“That’s not sound tax policy,” Titus said. “It’s just not fair.”

Keeping things the way they are

While the financial component for bettors is a major part of Titus’ criticism of the 90 percent deduction standard, it’s not the only reason for her objection.

According to the longtime politician, assuming the Big Beautiful Bill’s structure could threaten the safety of gamblers, as well as the viability of legal wagering platforms.

“Beyond being unfair, (the new provision) will push people toward offshore or unregulated markets where consumer protections are not existent, and transparency is weaker, the opposite of what responsible gambling policy should encourage,” she said. “This change to the tax code was snuck into the Republican reconciliation bill, and it is so disastrous that nobody will even take credit for it. Many of my colleagues in the Senate have admitted they didn’t even realize it was in there and knew what it did.”

Critically, Titus’ bill does not propose any other changes to gaming or tax laws. It would simply reassert the structure currently in place. 

There are only two weeks until the end of the year. Each of the last nine congressional sessions adjourned on Jan. 3.