Dina Titus asks Congress to restore 100% deduction for gambling losses before 2027

Representative Dina Titus has asked Congress to restore a full 100% tax deduction for gambling losses before the end of 2026, arguing the current rule could harm regulated operators and taxpayers. The current federal rule for fiscal year 2026 caps deductible losses at 90%, and Titus asked that the correction be included in year‑end legislation.

What changed and who proposed it

The 90% cap appeared in the text known as the One Big Beautiful Bill Act and took effect for fiscal year 2026. Under the new rule, a gambler with $100,000 in winnings and $100,000 in losses could face federal tax on $10,000, despite breaking even.

The legislative package to reverse that cap was filed as H.R. 4304, the "Fair Accounting for Income Realized from Betting Earnings Taxation Act" or FAIR BET Act; Representative Titus introduced H.R. 4304 on July 7, 2025.

Legislative status and support

The House Ways and Means Committee approved the FAIR BET Act in September by 38 votes to 5. Despite that result, the measure has not been brought to a full House vote. The bill would still require Senate approval and the president's signature before becoming law.

Titus contacted the Speaker of the House, Mike Johnson, and the Majority Leader, Steve Scalise, on November 5, asking them to attach the correction to year‑end must‑pass legislation. In her letter she wrote:

"As Congress returns from recess and turns to end-of-year legislation, I respectfully urge Leadership to expeditiously bring a gambling loss dedication fix to the House floor and include it in a must-pass legislative vehicle," wrote Titus.

Arguments and geographic context

Titus, a Democrat from Nevada, represents a district that includes the Las Vegas Strip, where casino employment and gaming investment are significant economic factors. In her request she stated that the restriction "unfairly burdens professional gamblers and casual players alike and will inevitably drive players toward offshore and unregulated markets where consumer protections are nonexistent, thereby undermining responsible gaming efforts nationwide. This will further reduce tax revenue and stifle investment by the industry here at home, costing jobs and impacting ancillary businesses." According to her, the measure could discourage betting through licensed operators and push activity toward unregulated markets.

Timing and next steps

Congress has only weeks before the current session ends; without an agreement before year‑end, the 90% rule will remain in effect. Lawmakers could take up the issue again in 2027 if it is not corrected now.