FAIR BET Act Blocked From Defense Bill, But Push to Restore Gambling Loss Deductions Continues

Rep. Dina Titus’s (D-NV) attempt to add the FAIR BET Act, which aims to restore gambling losses deductions to 100%, to the 2026 National Defense Authorization Act (NDAA) failed this week after the GOP-controlled House Rules Committee declined to consider the amendment.

Titus, who called the amendment an “easy fix,” wrote on X:

“Unfortunately, the GOP-controlled Rules Committee did not accept the FAIR BET Act as an amendment to the NDAA. This was an easy fix that should have been adopted. Nonetheless, I will continue to build support to restore the 100% gambling loss deduction.”

The 2026 NDAA, a 1,000-page bill passed by the Senate, sets the defense policy and funding parameters, including a $924.7 billion defense budget. That includes $878.7 billion for the Department of Defense, which President Donald Trump is attempting to rebrand as the Department of War. The official name remains Department of Defense, as only Congress can make a legal change.

While the NDAA has nothing to do with gambling, Titus introduced her FAIR BET Act amendment in an attempt to facilitate its passage.

What the FAIR BET Act Does

Titus introduced the bill, formally titled the Fair Accounting for Income Realized from Betting Earnings Taxation Act, at the beginning of July. It aims to restore gamblers’ ability to deduct 100% of their losses up to the amount of their winnings.

That was the standard for decades until the One Big Beautiful Bill Act (OBBBA), narrowly passed in both chambers of Congress and signed into law on July 4, reduced the deduction to 90% of losses.

The change could be significant for professional and many recreational gamblers. For example, in the past, if one won $100,000 but lost it all, they would not owe any taxes.

With the change, they would owe taxes on the taxable $10,000 (10% of the losses). That equates to owing roughly $2,400 without making any profit.

The change resulted in significant backlash from the gambling world and beyond. Shortly after the passage of OBBBA, Titus was the first lawmaker to pledge to reverse it. Several senators later stated that they were unaware of the provision and expressed support for reversing it.

Still Alive in Congress

Although it died as an amendment to the NDAA, the FAIR BET Act remains active as a standalone bill in the House. Currently, it is pending before the House Ways and Means Committee, and it’s awaiting a hearing.

Bipartisan members, including committee chair Rep. Jason Smith (R-MO), have signaled interest in reversing the OBBBA provision.
The FAIR BET Act is one of three active bills aimed at reversing the gambling deduction.

Shortly after Titus introduced her bill, Sen. Catherine Cortez Masto (D-NV) unveiled the FULL HOUSE Act in the Senate. Masto attempted to pass her legislation using unanimous consent, a procedural move that requires no objections to pass.

However, Sen. Todd Young (R-Indiana) objected, blocking its advancement. That did not kill the measure, but it stalled the faster route to passage.

The third bill, titled the WAGER Act, was introduced by Rep. Andy Barr (R-KY). That measure also awaits hearing from the House Ways and Means Committee.