Dina Titus pushes Congress to restore full gambling loss tax deduction in 2026

Representative Dina Titus urged Congress on 9 November 2026 to restore a full federal gambling loss tax deduction for the 2026 tax year, warning the current rules could harm regulated operators and taxpayers. The change limits deductible gambling losses to 90% of losses versus the previous 100% and took effect for 2026 after the One Big Beautiful Bill Act. Titus asked House leadership to attach a correction to end-of-year legislation.

Why Titus is pushing for a fix

Titus, the Nevada Democrat whose district covers the Las Vegas Strip, says the revision creates situations where taxpayers who broke even on gambling still face federal tax liability. Under the revised tax code, a gambler with $100,000 in winnings and $100,000 in losses can face federal income tax on $10,000 because losses are deductible only up to 90% of actual losses. Individual taxpayers must still itemize to claim gambling losses and losses cannot exceed gambling winnings.

Titus argued the limit could discourage betting through licensed operators and drive players to offshore, unregulated markets. She wrote 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.”

Legislative path and timing

Titus introduced H.R. 4304 on 7 July 2025 to reverse the deduction change. The House Ways and Means Committee approved the FAIR BET Act, formally titled the Fair Accounting for Income Realized from Betting Earnings Taxation Act, in September by a vote of 38 to 5. The committee approval does not equate to full congressional passage; the bill still requires a House floor vote, Senate approval and the President's signature to become law.

On 5 November 2026 Titus contacted House Speaker Mike Johnson and Majority Leader Steve Scalise asking them to include the correction in a must-pass year-end legislative vehicle as Congress returns from recess. Congress has only weeks remaining in the session; without action the 90% rule will remain in place for the 2026 tax year, though lawmakers could revisit the issue in 2027.

House Ways and Means Committee approval is a milestone but not the final step. Titus framed the change as providing greater certainty for gamblers and licensed gaming businesses if restored, and she continues to press for attachment to essential year-end bills.