When the One Big Beautiful Bill (OBBA) Act passed the U.S. House of Representatives last week, betting professionals and industry pundits were quick to point out a section of the legislation that would significantly change the way bettors are allowed to deduct losses on their tax returns. On Monday, U.S. Rep. Dina Titus from Nevada's first district, which represents part of Las Vegas, introduced a bill to roll back those changes.
The Fair Accounting for Income Realized from Betting Earnings Taxation (FAIR BET) Act would restore the ability for bettors to deduct 100% of their annual losses against their gains, as they could before the passage of OBBA, which limits bettors to deducting 90% of their losses in any given tax year. Critics of the bill signed into law Friday by President Trump noted that it could create scenarios where bettors must pay taxes in years when they break even or have a net loss.
Titus, a Democrat who said the betting provision was added to OBBA "by Senate Republicans without consent of the House," brought on Rep. Ro Khanna from California to co-sponsor FAIR BET.
"This common-sense legislation will bring fairness back to gaming taxation, making sure that gamblers can fully deduct losses when they report their winnings," she said in a statement. "It gives everyone -- from recreational gamblers to high-stakes gamblers -- a fair shake. We should be encouraging players to properly report their winnings and wager using legal operators. The Senate change will only push people to not report their winnings and to use unregulated platforms."
The American Gaming Association, the gambling industry's lobbying organization, commended the passage of the gambling tax provision in OBBA when it passed last Thursday, but is also backing FAIR BET.
"The American Gaming Association applauds Congresswoman Titus for introducing the FAIR BET Act," the organization said in a statement to ESPN. "We are committed to working with Congresswoman Titus, other congressional leaders, and the Trump Administration to restore the long-standing tax treatment of gaming losses."