UPDATE: Efforts to restore gambling loss deductions are gaining crucial momentum as two lawmakers just joined the fight. Nevada Rep. Dina Titus announced today that Florida Democrat Darren Soto and Pennsylvania Democrat Chris Deluzio are now cosponsors of her FAIR BET Act, formally known as H.R. 4304.
This announcement, made on social media just hours ago, brings Titus’s total number of cosponsors to nine as she pushes for a repeal of the recent cap on gambling loss deductions. The bill is currently under review by the influential House Ways and Means Committee, but no vote has been scheduled, leaving its fate uncertain.
The controversy stems from a provision hidden within President Donald Trump‘s extensive legislation known as the One Big Beautiful Bill (OBBB), which was passed earlier this month. This bill includes significant changes across various sectors, but one of the most contentious adjustments limits the amount taxpayers can deduct from their gambling losses from 100% to just 90% of winnings.
This shift has raised alarms across the gambling industry, particularly in Titus’s Las Vegas district, where many individuals depend on these deductions. Industry advocates warn that restricting deductions could seriously harm professional gamblers and drive players towards unregulated markets, ultimately escaping tax obligations.
The implications are significant. While proponents of the deduction cap argue it will generate over $1 billion in new federal revenue over the next decade, critics contend that the anticipated revenue could fall short if legal gambling participation declines.
Titus is determined to rally support for her repeal effort despite the challenges posed by a divided House, which is currently controlled by Republicans who may resist reversing a revenue source that has already been integrated into law. Just earlier this month, her Senate counterpart, Catherine Cortez Masto, attempted to restore the full deduction through unanimous consent, but her efforts were blocked, further highlighting the uphill battle ahead.
With the newly imposed deduction limits set to take effect on January 1, 2026, urgency is paramount. Lawmakers must act swiftly if they wish to reverse this controversial change before it impacts countless taxpayers and the gambling industry at large.
The latest developments underscore the need for immediate action and further support for the FAIR BET Act. As the situation unfolds, all eyes will be on Congress to see if they can navigate the political landscape and restore these vital deductions for gamblers across the nation.
