FAIR Bet Act Gains Momentum with New Congressional Sponsors
The FAIR Bet Act, aimed at restoring full gambling loss deductions for taxpayers, has secured two new Democratic co-sponsors as it faces an uphill battle in Congress. The bipartisan legislation now counts 10 total co-sponsors as lawmakers push to reverse tax changes affecting professional gamblers and the regulated betting industry.
Growing Support Despite Political Headwinds
Florida Democrat Darren Soto and Pennsylvania Democrat Chris Deluzio recently joined the effort to pass H.R. 4304, bringing fresh momentum to the bill.
The legislation already had backing from eight other lawmakers, including four Republicans: Troy Nehls (R-TX), Jefferson Van Drew (R-NJ), Mark Amodei (R-NV), and Guy Reschenthaler (R-PA).
“I’ll keep pushing this bipartisan fix through Congress,” Rep. Dina Titus (D-NV) posted on X after announcing the new co-sponsors.
Titus, who represents the Las Vegas district, introduced the bill to counter provisions in President Donald Trump’s “One Big Beautiful Bill” (OBBB) that reduced gambling loss deductions from 100% to 90%.
Tax Change Creates Real-World Problems
The OBBB, signed by President Trump on July 4, 2025, altered Section 165(d) of the Tax Code among its many provisions. Starting January 1, 2026, gamblers can only deduct 90% of their losses against winnings when filing taxes.
This creates a painful scenario for players. Someone who wins $50,000 and loses $50,000 in a year would owe taxes on $5,000 they never actually kept. While this affects only taxpayers who itemize deductions, the impact hits professional gamblers particularly hard.
Industry experts warn the change could push more players toward unregulated markets that dodge taxes. The regulated gambling sector, especially in Las Vegas, fears losing business to offshore and illegal operators who don’t report to the IRS.
Legislative Path Faces Major Obstacles
The FAIR Bet Act currently sits in the House Ways and Means Committee, which handles tax legislation. Despite bipartisan support, the bill faces tough odds in the Republican-controlled House, where leadership shows little interest in reversing an established revenue source.
A public field hearing on the OBBB is scheduled for Friday, July 25, at 10:00 AM PDT at YESCO headquarters in Las Vegas. The Ways and Means Committee will accept written testimony from the public about both the OBBB and the FAIR Bet Act. Field hearings help lawmakers assess issues in real-world settings rather than Washington committee rooms.
Similar efforts in the Senate by Nevada Senator Catherine Cortez Masto have also stalled, indicating resistance in both chambers. Supporters of the current 90% limit estimate it will generate over $1 billion in federal revenue over the next decade. Critics counter that these projections won’t materialize if legal gambling activity drops.
Clock Ticking Toward Implementation
With the new deduction limits set to take effect January 1, 2026, lawmakers have limited time to act. The FAIR Bet Act seeks a simple fix: replace “90 percent” with “100 percent” in the tax code.
Other Democratic co-sponsors include Ro Khanna (D-CA), Steven Horsford (D-NV), Susie Lee (D-NV), and Gil Cisneros (D-CA). Reschenthaler serves as co-chair of the Congressional Gaming Caucus alongside Titus, giving the bill some institutional support within Congress.
The gambling industry continues lobbying for the change, arguing that taxing phantom gains undermines the legal betting market’s integrity. Whether enough lawmakers will agree before the deadline remains an open question.
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