Nevada Representative Dina Titus is taking a firm stand against a controversial new tax change impacting gamblers across the country. On Monday, she introduced the Fair Accounting for Income Realized from Betting Earnings Taxation Act—better known as the FAIR BET Act—a bill designed to reinstate the full deduction of gambling losses for tax purposes.

The move directly challenges a provision in President Donald Trump’s recently enacted budget reconciliation package, widely known as the One Big Beautiful Bill Act (OBBBA). That measure alters the longstanding tax policy by capping gambling loss deductions at 90% of reported winnings.

“This common-sense legislation will bring fairness back to gaming taxation, making sure that gamblers can fully deduct losses when they report their winnings,” Titus stated, according to KSNV. “It gives everyone—from recreational gamblers to high-stakes gamblers—a fair shake.”

Tax Code Changes Draw Sharp Criticism from Gaming Sector

Previously, the tax code allowed gamblers to deduct losses dollar-for-dollar against their winnings, but under the new rule in OBBA, only 90% of those losses are deductible. The change means that a gambler who earns $100,000 in winnings and incurs $100,000 in losses would now be taxed on $10,000 in income, despite breaking even.

This provision, inserted into the Senate version of the bill by Senator Mike Crapo (R-Idaho), has drawn considerable backlash from professional gamblers and industry advocates. Critics argue that this policy could undermine the livelihoods of poker players and other gambling professionals while driving bettors toward unregulated offshore platforms.

“The black market doesn’t pay taxes, isn’t regulated, doesn’t help with problem gaming, so it’s bad for the industry as well as for the player,” Titus warned. The Nevada congresswoman, who co-chairs the Congressional Gaming Caucus, introduced the bill with co-sponsorship from Rep. Ro Khanna (D-California) and Republican Rep. Troy Nehls (R-Texas), signaling bipartisan support for the reversal effort.

Industry Leaders Voice Support, Warn of Black Market Risks

The bill’s rollout has been welcomed by members of the gaming community, particularly in Nevada. Derek Stevens, co-owner of the Circa, The D, and Golden Gate hotel-casinos in Las Vegas, publicly praised Titus’ actions and urged Congress to not only restore the 100% deduction but also address other outdated policies—such as the $1,200 slot winnings reporting threshold and the 0.25% federal excise tax on sports betting.

In her public comments, Titus emphasized the potential unintended consequences of the tax policy, noting it may discourage accurate reporting and steer bettors toward illicit operations. “The government should be encouraging players to properly report their winnings and wager using legal operators,” she said. “These changes will only push people to not report their winnings and to use unregulated platforms.”

AGA Responds to Both Measures

The One Big Beautiful Bill has received measured praise from the American Gaming Association (AGA), which represents the interests of the U.S. gaming industry. In a statement posted online, the AGA commended lawmakers for advancing the bill, claiming it bolstered the sector’s capacity for job creation and innovation.

However, the AGA also acknowledged the controversy surrounding the new deduction limits. “We commend congressional leaders on the passage of the One Big Beautiful Bill Act,” the AGA stated. “We look forward to President Trump’s expected signing and will work closely with Congress in the coming months to address the changes to wagering deduction losses and further modernize the tax code.”

After Titus introduced the FAIR BET Act, the AGA also voiced its support for her initiative. “The American Gaming Association applauds Congresswoman Titus for introducing the FAIR BET Act,” said a spokesperson. “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.”

What’s Next for the FAIR BET Act?

The FAIR BET Act now awaits review by the House Ways and Means Committee. If passed, the bill would reverse the newly imposed deduction cap by simply changing the statutory language from “90 percent” back to “100 percent,” effectively undoing the change set to take effect in 2026.

With over $1.1 billion in projected federal revenue at stake over the next eight years due to the current policy, the legislation faces both political and fiscal scrutiny. However, Titus remains steadfast in her push to safeguard the interests of Nevada’s gambling community and protect the integrity of regulated gaming markets.

“We’re gonna try and take it out,” Titus said prior to introducing the bill. “If it doesn’t go back to [the] Rules [committee] then we can’t, and then I’ll introduce a separate bill.”