Congresswoman Dina Titus Pushes FAIR BET Act in Defense Bill
URGENT UPDATE: Nevada Congresswoman Dina Titus is taking decisive action to advance her Fair Accounting for Income Realized from Betting Earnings Taxation Act (FAIR BET Act) by attaching it to the crucial 2026 National Defense Authorization Act (NDAA). This strategic move, announced earlier today, significantly boosts the chances of her proposal becoming law as it navigates through a bill that is essential for national defense.
The FAIR BET Act aims to reverse a controversial tax rule implemented under President Donald Trump that slashes the percentage of gambling losses taxpayers can deduct from 100% to 90%. Set to take effect in January 2026, this change has ignited fierce backlash from the gaming industry and individual bettors, who argue it unfairly taxes income they never earned.
As co-chair of the Congressional Gaming Caucus, Titus initially introduced this one-line bill in July, but it stalled in the House Ways and Means Committee. By linking it to the NDAA, she employs a legislative tactic designed to expedite bills that might otherwise fall through the cracks. This technique echoes a past success when the Unlawful Internet Gambling Enforcement Act was passed as part of a port security bill nearly two decades ago.
Leading figures in the gaming industry, including executives from MGM Resorts, Caesars, and Wynn Resorts, have actively lobbied lawmakers to eliminate the deduction cap, emphasizing its detrimental impact on both players and casinos. The American Gaming Association has also criticized the OBBBA rule, asserting it sets a dangerous precedent for a legal industry that adheres to stringent regulations.
Support for the FAIR BET Act is gaining momentum, with bipartisan backing manifesting in the form of ten co-sponsors in the House. Additionally, a Republican counterpart known as the WAGER Act was introduced by Rep. Andy Barr from Kentucky in July. In the Senate, Nevada’s Catherine Cortez Masto has proposed a similar initiative called the FULL HOUSE Act. Advocates argue that this amendment is vital for states like Nevada, where the gambling sector is a cornerstone of the economy.
Despite increasing support, critics are voicing concerns over the appropriateness of embedding a tax policy change within a defense bill, with some accusing lawmakers of overstepping their authority. The NDAA amendment is currently under review by the House Rules Committee, with a vote expected in the coming weeks.
If the FAIR BET Act successfully clears this legislative hurdle, it could ride along with the NDAA to the president’s desk, potentially marking a significant victory for the gambling industry and bettors nationwide. As the situation develops, stakeholders and constituents alike are keenly watching for updates on the progress of this critical legislation.
