Rep. Dina Titus Makes New Push to Restore Full Gambling Loss Deductions

Long-running efforts to roll back a controversial section of last year’s “One Big Beautiful Bill” are at a critical point as Nevada Rep. Dina Titus has taken an unusual procedural route to revive her stalled legislation. She aims to restore full deductions for gambling losses and enjoys broad support from players and industry representatives.

Titus Argues That Current Deduction Caps Are Unfair

The Nevada congresswoman recently filed a discharge petition to force a House vote on her FAIR BET Act, which has remained untouched in the House Ways and Means Committee since last summer. The bill would reverse a change included in the sweeping 2025 tax package signed by President Donald Trump that limits gamblers to deducting 90% of their losses against winnings.

While this adjustment may seem insignificant at first glance, it could have a substantial impact on the industry. Under the current rule, someone who wins $100,000 over the course of a year but also loses $100,000 will end up with $10,000 in taxable income. While such a player broke even in practice, in tax terms, they didn’t.

High-stakes and hobby gamblers are struggling, and local economies that depend on gaming revenue are hurting.

Nevada Rep. Dina Titus

Professional bettors and high-volume players argue that the measure is unfair and ignores economic realities. They point out that the new cap could result in tax bills tied to income that never truly existed. Titus also argues that other high-risk financial activities, such as trading stocks or commodities, are free from comparable limits.

Success Is Not Guaranteed

Industry groups, including the American Gaming Association, have intensified their lobbying efforts in recent weeks, warning lawmakers that the deduction cap, if left unchecked, could prompt gamblers to turn to unregulated offshore offerings that generate no taxes and lack critical safeguards. Jurisdictions like Nevada, where gaming remains a pillar of local employment and tax revenue, could be disproportionately affected.

Despite Titus’s efforts, the odds of success for a discharge petition are slim. The process requires 218 signatures to move a bill out of committee and onto the House floor. Even then, a vote is not guaranteed. With dozens of revenue-related measures already awaiting review, Titus’s proposal has yet to gain the needed attention.

My FAIR BET Act has been sitting in the Ways and Means Committee  for eight months, despite commitments from House Republicans  to restore the full gambling loss deduction.

Nevada Rep. Dina Titus

Legislators mostly regard discharge petitions as more symbolic than practical. However, several such maneuvers have successfully cleared the signature threshold since 2023, marking a resurgence for the practice. Even so, Titus’s petition has not received any additional signatures as of February 20. Its success will likely depend on the House’s willingness to revisit gambling policy during a crowded fiscal agenda.