A recent initiative aimed at reinstating the full federal tax deduction for gambling losses has successfully passed through the House Ways and Means Committee. This development provides Representative Dina Titus, a Democrat from Nevada, the opportunity to urge House leadership for a vote before the year concludes.
The committee approved the amendment on Wednesday, incorporating it into H.R. 10357, known as the Digital Asset Tax Certainty Act. Titus, who has been advocating for this change since the introduction of the bipartisan FAIR BET Act on July 7, 2025, emphasized the importance of timely action.
“After 14 months of advocating for this sensible, bipartisan solution, it is crucial for the House to pass this measure before January 1, 2027,” Titus stated. “This would prevent the reduction from 100% to 90% from taking effect and ensure that gamblers nationwide are not taxed on imaginary winnings they never received.”
The deduction reduction originates from the One Big Beautiful Bill, a tax and spending legislation signed by President Donald Trump on July 4, 2025, which decreased the gambling loss deduction from 100% to 90%. Titus was the first congressional member to voice concerns regarding this change and has been actively seeking a legislative remedy since then.
“The modification to the tax code was a deceptive tactic in the One Big Beautiful Bill that adversely affected both recreational and professional gamblers,” Titus remarked. “As I have reiterated numerous times, this issue requires rectification.”
Titus publicly raised this concern during a Ways and Means Committee field hearing in Las Vegas in July 2025 and subsequently sent letters urging the committee to include the amendment in a larger legislative package. She expressed frustration that no progress was made until this week’s vote, which coincides with the House preparing to adjourn until after the upcoming election.
“I am disheartened by the delay in action from the House committee,” Titus noted. “I highlighted the consequences of reducing the deduction during the field hearing in Las Vegas back in July 2025.”
“In the months following, I sent letters to the committee urging the incorporation of this fix into an upcoming package. Unfortunately, no action was taken until now, just as the House is set to recess until after the election. It is imperative for the Republican House leadership to bring this provision to the floor, and the Senate must also act swiftly to pass it if we aim to prevent this tax from harming gamblers across the country,” she added.
An earlier effort to amend the deduction was unsuccessful in January when the House Rules Committee chose not to advance an amendment to an appropriations bill that included the change. This was one of nearly 70 amendments proposed at that time.
The FAIR BET Act, officially known as House Resolution 4304, has garnered support from 25 co-sponsors. Key supporters include the American Gaming Association, MGM Resorts International, Caesars Entertainment, Wynn Resorts Ltd., DraftKings, FanDuel, the Nevada Resort Association, and the National Thoroughbred Racing Association. Titus's office also highlighted significant backing from gamblers on social media platforms.
In the Senate, Nevada Democrats Catherine Cortez Masto and Jackie Rosen have co-sponsored a related measure, the FULL HOUSE Act (Facilitating Useful Loss Limitations to Help Our Unique Service Economy Act), alongside Republican Senator Ted Cruz from Texas.
However, even if the House passes the bill, the matter will not be resolved. The Senate will need to approve its own version, and President Trump must sign any final legislation before the 90% deduction cap is set to take effect on January 1, 2027.