Nevada Representative Dina Titus has urged Congressional leaders to reinstate the full gambling-loss tax deduction, a move that would directly affect how players report gambling winnings and losses on their taxes.
Last year, Congress passed a tax code change that reduced the gambling-loss deduction from 100% to 90%. This adjustment means players who report equal amounts of gambling winnings and losses must now pay taxes on 10% of their winnings, effectively taxing money they did not keep. For instance, a player reporting $100,000 in both winnings and losses would owe taxes on $10,000 under the new rule, whereas previously no tax would be due.
Rep. Dina Titus, whose district includes the Las Vegas Strip, has called on House Speaker Mike Johnson and Majority Leader Steve Scalise to include language from the FAIR BET Act in any must-pass legislation before the current session ends. The FAIR BET Act aims to restore the full gambling-loss deduction, reversing the reduction enacted last year.
In July 2025, Titus introduced the FAIR BET Act, which passed the House Ways and Means Committee with a bipartisan vote of 38-5. However, the bill has yet to receive a full House vote. Titus emphasized that restoring the full deduction would provide certainty to taxpayers, businesses, and regulated gaming markets across the country.
The current 90% deduction places an unfair burden on both professional gamblers and casual players, according to Titus. She warned that the higher tax liability could push players toward offshore and unregulated gambling markets, where consumer protections and responsible gambling measures are often lacking. This shift could expose players to unlicensed operators and increase risks related to gambling harm.
For players, reinstating the full deduction means fairer tax treatment of gambling activities. It would allow losses to fully offset winnings for tax purposes, potentially reducing tax liabilities. This change also supports the regulated market by discouraging migration to offshore sites that do not offer consumer protections or responsible gambling tools.
If the provision is not enacted before Congress adjourns next month, Titus plans to reintroduce the legislation when Democrats take control of the House in January 2027. This continued effort keeps the issue relevant for players and bettors who are affected by how gambling income and losses are taxed.
Players should monitor this tax policy development closely, as it directly impacts how gambling income and losses are reported on tax returns. Understanding these changes can help players manage their tax obligations and avoid unexpected liabilities.
Additional information on this topic is available at CDC Gaming. For broader coverage on gambling regulations and player protections, visit our USA and Betting sections.
In related Nevada gambling news, Boomer’s Sportsbook continues its expansion across the state, recently receiving preliminary approval for two additional locations. This growth reflects ongoing developments in Nevada’s regulated gambling market, which could be influenced by tax policies affecting players and operators alike. More on this story can be found here.
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