Key Points
- The FAIR BET Act, introduced by Rep. Dina Titus, gained Reps. Soto and Deluzio as cosponsors on July 22, 2025, to restore 100% gambling loss deductions
- The OBBBA’s 90% deduction cap, effective 2026, taxes “phantom income,” impacting 700,000 itemizing gamblers and risking a shift to illegal markets
- Senate resistance, led by Sen. Young, stalls repeal efforts, but bipartisan support grows, per X posts; bettors should use licensed platforms for safety.
On July 22, 2025, the FAIR BET Act, introduced by Rep. Dina Titus (D-Nevada), gained two new cosponsors, Reps. Darren Soto (D-Florida) and Chris Deluzio (D-Pennsylvania), to reverse a tax provision in the One Big Beautiful Bill Act (OBBBA) that caps gambling loss deductions at 90% starting in 2026.
The bill, backed by six Democrats and three Republicans, aims to restore the 100% deduction to prevent taxing “phantom income.” You’re seeing a push to protect gamblers and the $72 billion industry, but political hurdles remain, urging reliance on regulated platforms.
Why the FAIR BET Act Was Introduced
The OBBBA, signed by President Trump on July 4, 2025, reduced gambling loss deductions from 100% to 90%, meaning a gambler with $100,000 in wins and losses owes taxes on $10,000 despite breaking even.
The provision, added late by the Senate Finance Committee, is expected to raise $1.1 billion over a decade but sparked backlash for unfairly taxing professional and recreational gamblers. Titus’ FAIR BET Act seeks to restore fairness, as the American Gaming Association (AGA) noted in a July 8 statement.
For you, this could mean fairer tax treatment, but verify operator licensing to avoid risks.
See also:
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- Meta Cracks Down on Filipino Influencers Promoting Illegal Gambling
- Allwyn Acquires Stoiximan, Offloads Casino Assets in Strategic Overhaul
Impact on Gamblers and the Industry
The 90% cap impacts the 700,000 taxpayers who itemize deductions, particularly professional gamblers facing higher tax burdens.
For example, a pro with $3 million in wins and $2.8 million in losses would be taxed on $480,000 instead of $200,000. The AGA warns this could push bettors to unregulated offshore sites, risking fraud.
Posts on X highlight growing bipartisan support but note Senate resistance. For you, this suggests potential tax relief if the bill passes, but sticking to licensed operators like DraftKings ensures safety.
Challenges and Public Response
A Senate attempt by Sen. Catherine Cortez Masto (D-Nevada) to restore the deduction via the FULL HOUSE Act failed on July 10 after Sen. Todd Young (R-Indiana) objected, seeking other provisions.
The 900-page OBBBA’s complexity hid the provision, surprising lawmakers. Critics argue it could harm Nevada’s economy.
Public support on X backs the repeal, but GOP resistance in the House and Senate poses obstacles. For you, this underscores the need to use regulated platforms amid uncertainty.
Broader Implications for the Gambling Market
The $72 billion global gambling market, with U.S. revenue at $71.8 billion in 2024, faces risks from the tax change driving bettors to illegal markets.
The FAIR BET Act, with bipartisan support, aligns with AGA’s push for tax fairness but faces a GOP-controlled Congress wary of losing $1.1 billion in revenue.
If passed, it could stabilize the industry; if not, high rollers may turn to unregulated platforms. For you, this suggests a dynamic market where choosing CFTC- or state-licensed operators ensures secure betting.
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