The push for tax fairness in gambling hit a roadblock this week. The House Rules Committee blocked the inclusion of the FAIR BET Act in the National Defense Authorization Act (NDAA).
The measure, introduced by Representative Dina Titus of Nevada, aimed to restore full deductions on gambling losses, a change that would particularly players, as well as online casinos and other gaming platforms.
Titus argued that without this correction, many Americans could face unfair tax burdens. She stressed that players might end up owing taxes despite having no net gambling income in a given year.
By keeping the outdated deduction limits in place, lawmakers left unresolved an issue affecting both casual gamblers and regular players of real money online casino platforms.
FAIR BET Act: Rep. Dina Titus’ Push and the Rules Committee’s Decision
Rep. Titus launched a sustained lobbying effort for the FAIR BET Act. She held hearings, met with industry stakeholders, and appealed to bipartisan lawmakers.
Titus proposed the amendment to address changes made to gambling loss deductions under the Trump administration’s budget. Previously, gamblers could deduct 100% of their losses.
However, a Senate Finance Committee measure, led by Senator Mike Crapo of Idaho, reduced that deduction to 90%. This change created concerns that some players might owe taxes even when they had no net gambling income for the year.
Despite her efforts, the Rules Committee blocked the proposal from advancing through the NDAA pathway. Members cited jurisdictional issues and concerns about attaching unrelated measures to the defense budget.
As a result, the FAIR BET Act will need another legislative avenue to gain momentum.
Impact on the Betting Industry and Next Steps
Blocking the FAIR BET Act leaves the tax landscape unchanged for U.S. players. Offshore and domestic online casinos alike remain subject to inconsistent tax rules that complicate fair play and reporting.
For many players, this creates uncertainty about whether winnings and losses will balance out under current law.
Industry experts argue that restoring full deductions would boost transparency and confidence in regulated gambling.
They believe aligning tax policy with fair standards could encourage more players to use licensed U.S. platforms and provide a better system.
Rep. Titus has vowed to continue pursuing the measure, though she didn’t state whether she’d do so through standalone legislation.
For now, the blocked proposal highlights the ongoing struggle to balance defense priorities with urgent issues like gambling tax fairness.