The fight over how much gamblers can write off on their taxes just got more interesting.
Nevada Congresswoman Dina Titus confirmed Monday that two more lawmakers have joined her push to repeal a federal cap on gambling loss deductions—an obscure yet impactful change buried in Congress’s recently passed legislative behemoth.
In a post on X, the platform formerly known as Twitter, Titus revealed that fellow Democrats Darren Soto (FL) and Chris Deluzio (PA) had signed on as cosponsors of the FAIR BET Act, bringing the total to nine. With six Democrats and three Republicans backing the measure, the bill is showing early signs of rare bipartisan momentum.
What’s Actually at Stake for Gamblers?
The bill, formally known as HR 4304, seeks to undo a provision within the “One Big Beautiful Bill” passed earlier this month—an omnibus legislative package that swept through Capitol Hill with a mix of celebration and side-eye.
One quiet tweak inside that bill? A restriction on how much gambling-related loss individuals can deduct when filing their taxes.
Before this, professional gamblers and certain high-stakes regulars could often deduct losses against their winnings, softening their tax burdens. But the new cap limits that practice, raising concerns not just in Las Vegas but in gaming hubs across the country.
Even casual players who hit it big—or lose big—could find themselves impacted.
Support Grows, But the Hurdles Are Real
Getting a bill through the House is never a cakewalk. Especially when it’s trying to untangle a provision that just got passed with broad political consensus.
But the tone from Titus and her supporters is determined. “I’ll keep pushing this bipartisan fix through Congress,” she wrote online, signalling a long-term effort rather than a quick win.
Still, not everyone’s cheering from the sidelines. Some watchdogs argue that repealing the cap could open doors for abusive tax shelters or overly favourable treatment for certain groups. The optics of supporting gambling-related deductions also complicate things politically for lawmakers in tight re-election races.
So Why Does This Matter Beyond Vegas?
It’s not just a Nevada issue. Gambling, once limited to a few pockets of the U.S., is now a national business—both offline and online.
States from New York to Michigan are cashing in on legal sports betting. And the tax implications are no small fry.
Here’s why this bill matters to a broader slice of Americans:
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Online gambling has surged by over 200% in revenue since 2020, with tax policies now directly affecting millions of players.
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Casinos and gaming companies often rely on favourable tax treatment to woo high-stakes players and retain regulars.
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Tax professionals have warned that the new cap creates compliance headaches and uneven enforcement across income brackets.
The Numbers Behind the Policy Shift
To understand the broader impact, let’s break down some figures. While not everyone itemises gambling losses on their returns, the Internal Revenue Service (IRS) still processes billions in gambling-related tax entries each year.
| Year | Total Reported Gambling Winnings | Total Reported Gambling Loss Deductions |
|---|---|---|
| 2019 | $30.3 billion | $22.1 billion |
| 2021 | $33.5 billion | $25.2 billion |
| 2023 | $37.8 billion (est.) | $26.7 billion (cap-adjusted) |
The deduction cap doesn’t just shave off a few dollars here and there. For professional gamblers, it could mean thousands in unexpected tax liability—possibly pushing some into higher tax brackets.
Where It Stands Now
The FAIR BET Act is currently sitting with the House Ways and Means Committee—a heavy-hitter in Congress that controls tax legislation.
This committee is often where good bills go to stall. But it’s also where bipartisan work happens, especially on tax codes affecting broad swaths of the economy.
Titus’s team has yet to confirm when the committee will formally consider HR 4304. But insiders suggest hearings could be scheduled later this year, depending on the fiscal calendar.
It’s worth noting: Congress just passed a historic tax deal. The appetite for more tweaks so soon may be thin.
Not Just About the High Rollers
One line of argument Titus is leaning on? This isn’t just about whales at the poker table.
Her office points to regular Americans who try their luck at the slots, sports betting apps, or even bingo nights—and who could be hurt if they hit a jackpot, only to discover the IRS isn’t letting them offset that with their inevitable losses.
Still, critics argue that giving tax breaks for gambling losses sends the wrong message.
“It’s like rewarding bad bets,” one policy analyst said anonymously. “Not everything that feels unfair is bad policy.”
But for those in the casino-heavy economies of the U.S.—including Nevada, New Jersey, Louisiana, and Mississippi—there’s little patience for that kind of rhetoric. They see it as an attack on jobs, tourism, and freedom of entertainment.
