US Congresswoman Dina Titus (D-NV) is making a play to counter a portion of President Donald Trump’s One Big Beautiful Bill that will greatly affect taxes related to sports betting.
Titus, from Nevada, introduced the Fair Accounting for Income Realized from Betting Earnings Taxation, or FAIR BET Act, to restore 100% deduction for gambling, including sports betting, losses.
“The recently passed budget bill included a provision inserted by Senate Republicans without consent of the House that imposed a tax increase on Americans who gamble by reducing from 100 percent to 90 percent the amount of losses they can deduct from gambling winnings for their income taxes,” Titus said in a release. “My FAIR BET Act would rightfully restore the full deduction for losses so gamblers don’t pay taxes on money they haven’t won.
The Big Beautiful Bill, which Trump signed on July 4, would limit gambling loss deductions to 90% of winnings. Essentially, if a bettor reports $100,000 in gambling losses, they would still have to pay taxes on $10,000 of income.
Sports betting tax increases
The gambling entry into the approximately 1,000-page bill appears to have emerged in the middle of June.
The change would take effect in 2026. It would help raise tax revenue a projected $1.1 billion over eight years.
It is a change that created much noise within the gambling world, including chatter that it would push betting offshore, cause bettors to not report winnings, and, potentially, end professional gambling.
Titus fights for gamblers
After the Senate passed its version of the bill, Titus vowed to battle the gambling inclusion. The House passed the bill without amendments.
Titus, who co-chairs the Congressional Gaming Caucus, introduced the FAIR Bet Act Monday. It simply strikes the 90% verbiage and replaces it with 100%.
Titus’s bill also includes California Rep. Ro Khanna as a co-sponsor. It will head to the House Ways and Means Committee.
“This common-sense legislation will bring fairness back to gaming taxation, making sure that gamblers can fully deduct losses when they report their winnings,” Titus said. “It gives everyone — from recreational gamblers to high-stakes gamblers — a fair shake. We should be encouraging players to properly report their winnings and wager using legal operators. The Senate change will only push people to not report their winnings and to use unregulated platforms.”
Sports betting tax history
Since the 1934 Revenue Act, gamblers have been able to deduct gambling losses.
Prior to the Big Beautiful Bill, 100% of losses were deductible.
The filers would have to itemize their deductions.
