Titus' Gambling Tax Deduction Fix Clears House Panel

A House committee has advanced Rep. Dina Titus' fix to preserve the full federal gambling loss tax deduction. The House Ways and Means Committee approved the Digital Asset Tax Certainty Act on Wednesday.

It includes Titus' provision to keep the deduction at 100 percent. Lawmakers passed the bill 38-5, sending it toward a full House vote. The measure blocks a scheduled cut that would drop the deduction to 90 percent starting Jan. 1, 2027.

Titus, who represents Las Vegas, has pushed the fix for 14 months. The bill now needs House and Senate approval before the deadline.

Panel Folds Titus, Horsford Gambling Tax Bills Together

Wednesday's vote folded Titus' gambling deduction language into the broader Digital Asset Tax Certainty Act. Nevada Rep. Steven Horsford's FULL HOUSE Act, a companion measure, also joined the package, arguing the fix protects Nevada jobs tied to tourism and gaming.

"Workers from dealers to restaurant staff depend on visitors choosing Nevada," Horsford said. "This unfair tax puts their livelihoods at risk."

Titus called the approval a milestone. She had pushed the fix for over a year, including a failed bid tied to the 2026 defense bill.

The 90% Cap, and Who's Fighting to Repeal It

Current law lets gamblers deduct 100 percent of documented losses against their winnings. A provision in the 2025 One Big Beautiful Bill Act reduced that deduction to 90 percent, effective Jan. 1, 2027.

Under the cap, someone who wins and loses $100,000 in a year still owes tax on $10,000.

Titus and industry groups call this outcome a tax on "phantom income." The American Gaming Association, MGM, DraftKings, FanDuel, Caesars, and Wynn have all backed the repeal effort. Titus first introduced the standalone FAIR BET Act in July 2025, days after the original cut became law. The FAIR BET Act has drawn bipartisan support, with cosponsors in both chambers.

Bill Advances to House and Senate Before Deadline

The tax package now heads to the full House floor for a vote. Titus urged leadership to act quickly, citing the looming deadline. "We must now encourage the House to approve this measure before Jan. 1, 2027," Titus said. Gamblers should not pay tax on "phantom money they never won," she added.

Ways and Means Chairman Jason Smith has said he backs restoring the full deduction. Smith has previously favored a competing measure, Rep. Andy Barr's WAGER Act, over Titus' bill.