Dina Titus’ FAIR Bet Act Blocked by Rules Committee

Congresswoman Dina Titus from Nevada faced another obstacle in her push to change a debated gambling tax law. On Tuesday, the House Rules Committee chose not to include her Fair Accounting for Income Realized from Betting Earnings Taxation Act, also known as the FAIR Bet Act, as an amendment to the National Defense Authorization Act. This decision puts the proposal on pause.

Titus Keeps Fighting After FAIR Bet Act Fails in Defense Bill

The FAIR Bet Act aims to reverse a policy introduced under former President Donald Trump’s One Big Beautiful Bill Act. This policy cut the deduction for gambling losses from 100% to 90%. Starting in the 2026 tax year, gamblers might owe taxes even if they just break even on paper. For instance, if someone wins $50,000 but also loses $50,000, they would still be taxed as if they made $5,000 in income.

Titus, whose district covers Las Vegas, has opposed this change. She called restoring the full deduction a simple fix and blamed Republicans for stopping her amendment. She said she will keep pushing for support until the deduction goes back to what it used to be.

The Rules Committee rejected the FAIR Bet Act, marking another obstacle for the bill. Titus introduced this legislation in July. It is still under review in the House Ways and Means Committee. Lawmakers from both parties, including some co-sponsors, have backed it. Jason Smith, head of the committee and a Republican from Missouri, said he supports lifting the deduction cap. He pointed out that Senate Republicans included this rule in the Trump-era plan.

Gambling Industry Pushes Against Delay on FAIR Bet Act Progress

This topic has sparked strong opinions in the gaming world. Groups like the American Gaming Association have said taxing “phantom income” could push players toward illegal offshore sites. They believe this might hurt states that depend on casino income. Opponents of the current policy say it punishes both casual and professional gamblers who follow the rules.

Supporters of the cap point to the potential increase in revenue. The Joint Committee on Taxation predicts that cutting allowable deductions by 10% could bring in $1.1 billion in federal funds over ten years.

Titus tried using the NDAA to push her proposal forward. Lawmakers often take this approach when trying to pass measures stuck in limbo. The defense bill, which approves $925 billion for military spending in 2026, always gets passed each year. Even with her push, the committee decided not to include the amendment. Now, Titus has to think about what to do next.This latest loss is her third try to move the measure forward, but Titus says her fight is not done yet. Bipartisan backing is already documented, and industry leaders still push hard to make changes. The FAIR Bet Act will show up in Congress again in the coming months.