LAS VEGAS — In a move aimed at protecting Nevada’s thriving gaming sector, Rep. Dina Titus (D‑NV) wrote to House Speaker Mike Johnson and Majority Leader Steve Scalise urging them to add the FAIR BET Act to any must‑pass bill during the lame‑duck session. Titus emphasized that restoring the full deduction for gambling losses would correct what she called an “unfair change” to the tax code and give certainty to taxpayers, businesses, and regulated gaming markets across the country.
The FAIR BET Act, which passed out of committee in September, seeks to reinstate the previous rule that allowed gamblers to deduct the full amount of their losses against winnings. Under the One Big Beautiful Bill, the deduction was reduced to 90 percent, meaning a player who reported $100,000 in winnings and $100,000 in losses would still owe tax on $10,000. Titus argues that this change could push professional gamblers and casual sports bettors toward illegal or offshore markets, harming both consumers and legitimate operators.
“Enactment of this bipartisan provision would correct an unfair change in the tax code and provide needed certainty to taxpayers, businesses, and regulated gaming markets across the country,” Titus wrote. She urged the Republican leadership to act quickly, noting that the end of the year is a critical time for tax‑related legislation.
The request comes as the Trump administration continues to prioritize economic growth and regulatory certainty for American businesses. Restoring the full deduction aligns with the administration’s broader effort to reduce unnecessary tax burdens and keep the United States competitive in the global gaming industry.
Why the deduction matters for Nevada
Nevada’s economy is heavily dependent on gaming, tourism, and related hospitality services. The state generates billions of dollars in tax revenue each year, and many Nevada residents rely on gambling winnings as a supplemental source of income. By allowing a full deduction, the tax code treats gambling losses the same way it treats other investment losses, ensuring fairness and encouraging responsible participation in regulated markets.
Critics of the One Big Beautiful Bill argue that the reduced deduction could discourage both professional gamblers and casual bettors, potentially driving them to unregulated venues. Such a shift would undermine consumer protections and could increase the appeal of illegal gambling operations.
Political context
Democrats are set to take control of the new Congress in January after sweeping victories in the recent midterm elections. While the FAIR BET Act enjoys bipartisan support, its fate now rests with the Republican House leadership, which controls the legislative agenda during the lame‑duck session. Titus’s letter underscores the urgency of addressing the issue before the session ends.
House leadership has not yet responded publicly to the request. However, the administration’s focus on tax relief and business‑friendly policies suggests a receptive environment for measures that reduce burdens on American entrepreneurs and consumers.
Next steps
If the House leadership includes the FAIR BET Act in a must‑pass vehicle, the legislation could move to a floor vote before the session concludes. Stakeholders in the gaming industry, as well as taxpayer advocacy groups, are watching closely for any indication of progress.
Restoring the full gambling loss deduction would not only benefit Nevada’s gaming community but also set a precedent for fair tax treatment of gambling activities nationwide, reinforcing the United States’ commitment to a transparent and competitive market.
Original reporting: News 3 KSNV Las Vegas (local) — read the source article.
