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Just days after US President Donald Trump hinted that he might support eliminating a new gambling tax set to go into effect on January 1, 2026, Nevada Representative Dina Titus (D-NV) has urged the Ways and Means Committee Chairman, Representative Jason Smith (R-MO), to place the FAIR BET Act on the committee calendar.
The FAIR BET Act (standing for Fair Accounting for Income Realized from Betting Earnings Taxation Act) is a proposed U.S. federal bill aimed at changing how gambling losses are treated under the tax code.
The bill was introduced in July 2025 in the U.S. House of Representatives by Titus as H.R. 4304 and referred to the Ways and Means Committee.
The Big Beautiful Bill was a sweeping U.S. federal statute, passed in 2025 by the 119th Congress as H.R. 1 and signed into law by Trump. Spanning more than 900 pages, the bill contained a slew of provisions changing federal programs and the tax code, many of which lawmakers admit they are only now beginning to fully digest.
The gambling world quickly learned they, too, would be impacted.
Under the new law, starting for tax years beginning January 1, 2026, gamblers can no longer deduct 100% of their gambling losses. Instead, losses are capped at 90% of actual losses when offsetting winnings.
Even if a gambler were to break even, the new law now requires these individuals to report taxable income.
Titus tweeted on Thursday:
Today I am urging @WaysMeansCmte Chairman @RepJasonSmith to place the FAIR BET Act on the committee calendar. Now is the time to fix the unfair 90% tax deduction for gambling losses that negatively impacts professional and casual players. See my full letter to the Chairman below.
The response to Titus' efforts have been overwhelmingly positive.
Joe Franchise tweeted out to Smith:
"@RepJasonSmith President Trump is now toying with the idea of no taxes on gambling winnings and you can’t get this pushed through? Do better. Sincerely, 65% of America (Yes 65% of America placed a bet of some form last year)"
Poker player Steve r Lindner expressed his disgust at the failure to support Titus' bill.
"I had voted Republican in the last election. If they do not correct this mistake and add the fair bet act to the calendar. I will never vote Republican again."
- Ace King, Gambling911.com
