Gamblers across the United States are raising concerns about President Donald Trump’s “One Big Beautiful Bill Act” that messes with how much they can write off their losses.
So, to push back on that, U.S. Rep. Dina Titus (D-Nevada), who’s also co-chair of the Congressional Gaming Caucus, introduced the Fair Accounting for Income Realized from Betting Earnings Taxation (FAIR BET) Act on Monday.
Her bill is all about getting that 100% deduction for gambling losses back, pushing against Trump’s idea of only allowing 90%. That change alone was actually expected to rake in about $1.1 billion.
According to the American Gaming Association (AGA), they will collaborate with the Congress to ensure that the 90% deduction will not go into effect in 2026.
“The American Gaming Association applauds Congresswoman Titus for introducing the FAIR BET Act. We are committed to working with Congresswoman Titus, other congressional leaders, and the Trump Administration to restore the long-standing tax treatment of gaming losses.”
How does Trump’s “One Big Beautiful Bill Act” Impact Gamblers
President Trump’s “One Big Beautiful Bill Act,” which just passed on July 4th, might sound like a small difference, but for high-stakes gamblers, it’s a big deal.
Congresswoman Titus said:
“The recently passed budget bill (Big Beautiful Bill) included a provision inserted by Senate Republicans without consent of the House that imposed a tax increase on Americans who gamble by reducing from 100 percent to 90 percent the amount of losses they can deduct from gambling winnings for their income taxes. My FAIR BET Act would rightfully restore the full deduction for losses so gamblers don’t pay taxes on money they haven’t won.Picture winning $100,000 and losing $100,000; you’d still owe tax on $10,000. At a 24% tax rate, that suddenly means a gambler could owe $2,400 in taxes, even if they didn’t make a dime in profit.
Professional poker player Phil Galfond said:
“If you are a high-volume player—especially if you are a professional—let’s say that over all the sessions that we played over the course of the year, we won $5.2 million, and we lost $5 million for a net of $200,000. Now we would pay as if we won $5.2 million minus 90 percent of $5 million, which is $4.5 million, for a fake net of $700,000. You would make $200,000 during the year, and you would pay tax as if you made $700,000.”
And this isn’t just about the money lost for individuals; it could also mean less tax revenue for the U.S., People are already warning this could ruin careers for pro players and push others toward shady, unregulated online sites, therefore breaking responsible gaming laws.
“The black market doesn’t pay taxes, isn’t regulated, and doesn’t help with problem gaming, so it’s bad for the industry as well as for the player,” Titus added.
What happens next?
So, President Trump’s whole proposition is to bring in more cash to help pay down the nation’s debt.
Usually, if you win some cash gambling in the U.S., you’ve got to report all of it as income. The good news is, you can also write off your losses, but only up to the amount you actually won, and you have to itemize your deductions for it. This system is basically designed to make sure you’re only taxed on any real profit you walk away with.
So Representative Titus mentioned that if the ‘100% deduction” doesn’t get reinstated, then she’ll just introduce a completely separate bill to tackle it.
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