Nevada Representative Dina Titus now proposes adding <a href="/articles/industry/congresswoman-titus-files-fair-bet-act-to-reverse-loss-cap/">the FAIR BET Act</a> to the 2026 defense budget. She introduces it as an amendment to the National Defense Authorization Act (NDAA). Her goal: reverse a gambling-loss deduction cut from 100 percent to 90 percent. The change stems from the One Big Beautiful Bill Act (OBBBA), enacted in July 2025.
<h2>FAIR BET Act Aims to Give Players &#8220;A Fair Shake&#8221;</h2>
Rep. Titus said simply, &#8220;My FAIR BET Act would rightfully restore the full deduction for losses so gamblers don&#8217;t pay taxes on money they haven&#8217;t won.&#8221; She added, &#8220;It gives everyone &#8211; from recreational gamblers to high-stakes gamblers &#8211; a fair shake.&#8221;
Moreover, she emphasized that fair tax policy should encourage legal betting and discourage unregulated platforms. &#8220;We should be encouraging players to properly report their winnings and wager using legal operators,&#8221; she said. 
Her amendment aims to attach the FAIR BET Act directly to the must-pass NDAA. This strategy may fast-track its passage ahead of slow standalone legislation.
Meanwhile, similar efforts oppose the limit. In the House, National Republican Rep. Andy Barr <a href="/articles/industry/wager-act-aims-restore-full-gambling-loss-deduction/">introduced the WAGER Act</a>. That bill also seeks to restore full gambling-loss deductions. In the Senate, Nevada&#8217;s Senator Catherine Cortez Masto proposed the FULL HOUSE Act last July.
The American Gaming Association (AGA) also backs restoration. They argue the 90 percent cap creates unfair &#8220;phantom income,&#8221; penalizing legal, regulated gambling. The AGA applauds Rep. Titus&#8217; proposal and vows to work with her and other leaders to reinstate fair tax treatment.
<h3>Gambling Tax Reforms, FAIR BET Act, and Industry Response</h3>
Notably, Sen. Cortez Masto&#8217;s <a href="/articles/industry/full-house-act-blocked-senate-gop-opposition/">FULL HOUSE Act was blocked</a> from unanimous consent when Senator Todd Young objected. That illustrates how repeal efforts face procedural resistance.
Still, Rep. Barr&#8217;s WAGER Act and Rep. Titus&#8217; FAIR BET Act persist. Both reflect bipartisan concern over taxing losses gamblers never truly made. AGA and gaming stakeholders worry the deduction cap may discourage reporting and harm <a href="/best-online-casinos/real-money/">real money online casinos</a> and other platforms.
In addition, the issue affects the US gambling environment, namely the players. Whether high-stakes or casual users of real money online casinos, for example, gamblers now risk extra tax liability thanks to the OBBBA deduction cut. These legislative moves aim to restore fairness and sustain legal &#8211; and taxed &#8211; gaming activity.
With the FAIR BET Act and similar bills gaining traction, there is hope that U.S. gambling policy will once again prioritize fairness and players first.
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