FAIR Bet Act to Remedy ‘Big Beautiful Bill’ Gambling Implications

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FAIR Bet Act to Remedy ‘Big Beautiful Bill’ Gambling Implications

The FAIR Bet Act, or “Fair Accounting for Income Realized from Betting Earnings Taxation Act,” was filed by US Rep. Dina Titus (D-NV) in response to the One Big Beautiful Bill (OBBB) that reduced the tax deduction on losses incurred from gambling from 100% to 90%. The bill aims to restore the original 100% tax deduction, benefiting regulated gamblers and professional gamblers alike.

FAIR Bet Dina Titus OBBBA

Background of the OBBB

The One Big Beautiful Bill was signed into law by President Donald Trump on July 4, 2025. The bill has several tax implications that conservatives believe will benefit the American public and jumpstart the US economy. However, for gamblers, this legislative package is largely a loser.

Impact of Reduced Tax Deduction

The OBBB provision reduces the amount of gambling losses a person can deduct from their annual IRS tax liability from 100% to 90%. This means that a person who wins $50K throughout the year but also racks up $50K in losses would need to pay taxes on $5,000 — money they didn’t retain at the end of the tax reporting year.

FAIR Bet Seeks Restoration

The FAIR Bet Act seeks to restore the 100% deduction by striking the reduced amount and inserting “100 percent” in Section 165(d) of the Internal Revenue Code of 1986, as amended. This would ensure that gamblers can deduct their entire loss from their tax liability, providing a fairer shake for those in the industry.

Bipartisan Support for FAIR Bet

The bill has garnered bipartisan support since its filing, with 10 cosponsors, including four Republicans. This strong backing is expected to aid in passing the legislation and benefiting regulated gamblers nationwide.

FAIR Bet Rallies Support from Key Players

Reps. Ro Khanna (D-CA), Troy Nehls (R-TX), Steven Horsford (D-NV), Jefferson Van Drew (R-NJ), Mark Amodei (R-NV), Susie Lee (D-NV), Gil Cisneros (D-CA), Chris Deluzio (D-PA), Darren Soto (D-FL), and Guy Reschenthaler (R-PA) have all expressed their support for the bill. Reschenthaler co-chairs the Congressional Gaming Caucus with Titus.

Upcoming Hearing

The House Ways and Means Committee has scheduled a “Full Committee Hearing” on the OBBB for 10 am PDT at the YESCO headquarters in Las Vegas. The event is open to the public, who can submit written testimony about the OBBB and FAIR Bet.

Field Hearing: An Effective Way to Engage with Constituents

A field hearing, where a committee leaves the nation’s capital to conduct a meeting near the site related to the subject of the hearing, can raise public visibility, provide opportunities for congresspeople to evaluate the issue in the real world, and reinforce their relationship with constituents.

Key Facts

  • The FAIR Bet Act aims to restore the 100% tax deduction on losses incurred from gambling, benefiting regulated gamblers and professional gamblers.
  • The OBBB reduced the tax deduction from 100% to 90%, affecting individuals who win but also rack up significant losses.
  • The bill has garnered bipartisan support with 10 cosponsors.
  • The House Ways and Means Committee has scheduled a “Full Committee Hearing” on the OBBB for July 25 in Las Vegas.

Additional Resources

Please submit written testimony about the OBBB and FAIR Bet to [email address].

Conclusion

The FAIR Bet Act seeks to restore the 100% tax deduction on losses incurred from gambling, ensuring a fairer shake for those in the industry. With bipartisan support and a strong backing of key players, it is likely that this legislation will benefit regulated gamblers nationwide.

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