Titus Aims to Pass FAIR BET Act Through Defense Bill

Nevada Congresswoman Dina Titus is making a clever move to advance her Fair Accounting for Income Realized from Betting Earnings Taxation Act (FAIR BET Act). She plans to attach it to the 2026 National Defense Authorization Act (NDAA), a bill that must pass. This strategy, which she announced on August 27, increases the likelihood that her proposal will become law.

Congresswoman Uses Defense Bill to Challenge Controversial Gambling Tax Rule

The FAIR BET Act aims to undo a contentious modification from President Donald Trump’s One Big Beautiful Bill Act (OBBBA). This change cut the percentage of gambling losses people can deduct for taxes from 100% to 90%. Set to start in January 2026, this adjustment has sparked strong opposition from the gaming industry and individual bettors alike. They claim it taxes money they never earned.

Titus, who co-chairs the Congressional Gaming Caucus, first put forward the one-line bill in July, but it got stuck in the House Ways and Means Committee. By attaching the amendment to the NDAA, she is using a well-known lawmaking trick often used to speed up bills that might otherwise get left behind. About 20 years ago, a similar move led to the passage of the Unlawful Internet Gambling Enforcement Act as part of a separate port security bill.

People at the top of the industry and state officials strongly back getting rid of the deduction cap. Executives from MGM Resorts, Caesars, and Wynn Resorts have all talked to lawmakers to point out how this cap would hit both players and casinos in the wallet. The American Gaming Association also slammed the OBBBA rule, saying it sets a bad example by punishing a legal industry that follows strict rules.

Bipartisan Support Grows for FAIR BET Act as NDAA Vote Approaches

Support for the FAIR BET Act has been growing on both sides of the aisle. Ten people in the House have already put their names on it as co-sponsors, and a Republican version, the WAGER Act, showed up in July thanks to Rep. Andy Barr from Kentucky. Over in the Senate, Nevada’s Catherine Cortez Masto put forward a similar plan, the FULL HOUSE Act.

Backers say the amendment has a crucial impact on states like Nevada, where gambling forms the backbone of the economy. Critics, though, slam the strategy of tucking a tax policy shift into a defense bill, dubbing it a case of lawmakers overstepping their bounds.

The NDAA amendment now sits before the House Rules Committee for scrutiny, with members set to vote in the next few weeks. Should it make it through, the FAIR BET Act might hitch a ride on the yearly defense package all the way to the president’s desk, scoring a big win for the gambling world and bettors across the country.