Dina Titus’ FAIR BET Act Fights OBBB Provisions That Could Harm Gamblers

Challenging the OBBB’s Tax Hike

The OBBB’s provision, inserted by Senate Republicans, mandates that gamblers can only deduct 90% of losses against winnings, creating tax liabilities even for break-even players. For example, a player winning $100,000 but losing $100,000 faces taxes on $10,000.

Titus called this a “tax increase on Americans who gamble,” arguing it “punishes honest taxpayers” who report winnings. On X, she labeled it a “direct hit on Las Vegas,” a city reliant on its $15 billion casino industry.

Poker pro Phil Galfond warned, “This could end professional gambling,” with Doug Polk rallying the poker community against the bill, noting its impact on casual players too.

FAIR BET Act’s Push for Fairness

Titus’ FAIR BET Act aims to restore 100% loss deductions, ensuring gamblers “don’t pay taxes on money they haven’t won.” Described as “common-sense legislation,” it seeks to maintain fairness for recreational and high-stakes players alike.

Titus emphasized that full deductions encourage legal wagering and accurate reporting, countering the OBBB’s risk of pushing bettors to unregulated sites that “don’t pay state taxes or support our economy.” She and Stevens are exploring amendments to eliminate the OBBB’s provision or passing the FAIR BET Act as a separate measure to reverse it.

Overall, analysts like Jordan Bender from Citizens argue the OBBB affects mainly professional gamblers, with minimal impact on the “99%+” of recreational players who rarely itemize losses. With IRS audits at historic lows, enforcement may be lax.

Despite these caveats, Titus warns the OBBB threatens Las Vegas’ economy and jobs, risking $1.14 billion in federal revenue from 2026–2034 but potentially costing more by driving wagering offshore.