A fierce battle is brewing in the halls of Congress over a seemingly small, yet impactful, change to tax law. Representative Dina Titus is leading the charge to restore a long-standing deduction for gambling losses, arguing that current policy unfairly taxes “phantom income” and harms both casual and professional players.
The core of the dispute lies within the 2025 Budget Bill, a sweeping piece of legislation that altered the rules for deducting gambling losses. For decades, taxpayers could offset winnings with losses, a system Titus describes as “clear and fair.” The new law significantly restricts this ability, leaving many facing tax burdens on money they never actually realized as profit.
Titus hasn’t backed down since the bill’s passage. She introduced the FAIR BET Act in July 2025, a direct response designed to “permanently restore the 100% loss deduction.” Despite repeated setbacks and dismissed proposals, including an attempt to attach it to the National Defense Authorization Act, her commitment remains unwavering.
The Nevada representative frames this as a consumer protection issue, emphasizing the disproportionate impact on her state, the heart of American gambling. She warns that the change, while appearing minor, will have “significant and harmful consequences” for individuals across the spectrum of wagering activity.
Titus isn’t fighting this battle alone. A powerful coalition of industry giants stands firmly behind the FAIR BET Act. The American Gaming Association, MGM, DraftKings, FanDuel, Caesars, Wynn, the Nevada Resort Association, and the National Thoroughbred Racing Association all lend their weight to the effort, recognizing the broader implications of the tax policy.
In a recent letter to House Ways and Means Committee leadership, Titus implored them to consider a “common-sense tax fix.” She continues to publicly appeal to key lawmakers, urging them to address what she sees as an unfair and detrimental policy for gamers nationwide.
Despite facing stern opposition and a string of defeats, Titus remains resolute. She frames the issue as correcting an injustice, ensuring that individuals aren’t penalized for losses and that the tax code accurately reflects true net income from gambling activities.
