UPDATE: Nevada Congresswoman Dina Titus is set to make a bold move to advance her Fair Accounting for Income Realized from Betting Earnings Taxation Act (FAIR BET Act) by attaching it to the 2026 National Defense Authorization Act (NDAA). This strategic decision, announced on August 27, significantly boosts the proposal’s chances of becoming law.
The FAIR BET Act seeks to reverse a controversial tax modification introduced under former President Donald Trump‘s One Big Beautiful Bill Act (OBBBA), which slashed the deductibility of gambling losses from 100% to 90%. This change, effective January 2026, has ignited fierce backlash from the gaming industry and individual bettors, who argue it taxes money they never earned.
Titus, co-chair of the Congressional Gaming Caucus, initially introduced the one-line bill in July, but it faced challenges in the House Ways and Means Committee. By leveraging the NDAA, she is utilizing a legislative strategy designed to expedite bills that might otherwise be overlooked. A similar tactic previously led to the passage of the Unlawful Internet Gambling Enforcement Act two decades ago.
Major industry players—including executives from MGM Resorts, Caesars, and Wynn Resorts—have voiced strong support for abolishing the deduction cap. The American Gaming Association has criticized the OBBBA rule, stating it harms a legal industry that adheres to strict regulations.
As the NDAA vote approaches, bipartisan support for the FAIR BET Act is rising. Already, ten House members have co-sponsored the bill, and a Republican counterpart, the WAGER Act, was introduced by Rep. Andy Barr of Kentucky. In the Senate, Nevada’s Catherine Cortez Masto has introduced a similar proposal, the FULL HOUSE Act, emphasizing the amendment’s critical impact on states like Nevada, where gambling is a key economic driver.
However, critics are scrutinizing the tactic of embedding a tax policy change within a defense bill, calling it an overreach by lawmakers. The NDAA amendment is currently under review by the House Rules Committee, with a vote anticipated in the coming weeks. If approved, the FAIR BET Act could ride the NDAA to the president’s desk, marking a significant victory for the gambling industry and bettors nationwide.
Stay tuned for updates as this developing story unfolds. The implications of the FAIR BET Act could reshape the landscape of gambling taxation in the United States, affecting millions of players and the industry as a whole.
