A legislative push to undo recent changes to the tax code affecting gambling loss deductions is gaining bipartisan traction. On Monday, Nevada Congresswoman Dina Titus announced that two more lawmakers—Representatives Darren Soto of Florida and Chris Deluzio of Pennsylvania, both Democrats—have joined as cosponsors of her bill, the FAIR BET Act.
This brings the total number of cosponsors to nine, including six Democrats and three Republicans. The bill, officially titled H.R. 4304, seeks to roll back a controversial provision included in the broader legislative package known as the “One Big Beautiful Bill” (OBBB), passed earlier this month.
“I’ll keep pushing this bipartisan fix through Congress,” Titus wrote in a post on X.
New Tax Rules Spark Industry Backlash
The provision tucked into the OBBB reduces the amount of gambling losses that can be deducted from taxable income. Previously, gamblers could deduct 100% of their losses against winnings. The new law trims that deduction to 90%, a change set to take effect in 2026.
To illustrate the impact: under the old rules, a person who earned $100,000 in gambling winnings but incurred an equal amount in losses would owe no taxes. Under the updated code, only 90% of those losses can be deducted—meaning that same gambler would be taxed on $10,000 in income.
The gambling industry has expressed concern that this change could disincentivize legal betting, pushing high-volume gamblers toward unregulated markets where losses may not be tracked or reported at all.
Taxing vice industries like gambling has become a popular way for U.S. states to raise revenue. In the past year, states such as Ohio, Illinois, Maryland, North Carolina, and New Jersey have passed or debated higher taxes on sports betting. These increases are often viewed as a politically easier option amid shrinking federal funds.
FAIR BET Act Now in House Tax Committee
Titus’ bill has been referred to the House Ways and Means Committee, the body responsible for handling tax legislation. While the FAIR BET Act’s growing support signals some momentum, the bill has yet to be scheduled for a vote—leaving its future uncertain.
The proposal’s bipartisan nature, however, may help it gain traction. Lawmakers on both sides of the aisle have reason to reconsider the tax change: for Democrats, it’s a matter of fairness and regulatory oversight; for Republicans, it touches on individual financial freedom and possible impacts on local economies with legal gambling operations.
Repeal Faces Uphill Battle Despite Support
Even as more representatives sign on, the effort to reverse the deduction limit still faces legislative hurdles. The OBBB, which included this tax amendment, addressed a wide array of national priorities—ranging from immigration enforcement to foreign policy—making any changes politically complicated.
Still, Titus and her co-sponsors are pressing forward, arguing that the new limit unfairly penalizes gamblers and undermines the integrity of regulated gaming.
With more legislators joining the effort, advocates of the FAIR BET Act are hopeful that the mounting support will translate into action in committee—and eventually, on the House floor.
Source:
“Gambling tax deduction repeal bill gains more sponsors in U.S. House”, cdcgaming.com, Jul 21, 2025
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