LAS VEGAS (FOX5) — A key congressional committee took a critical step Wednesday toward restoring the full federal tax deduction for gambling losses, advancing a legislative fix championed by Southern Nevada lawmakers.
The House Ways and Means Committee approved the Digital Asset Tax Certainty Act, which includes language backed by Rep. Dina Titus, to preserve a 100% tax deduction on wagering losses. The provision aims to block a pending tax change that would slash the deduction cap to 90% starting Jan. 1, 2027.
Titus, who originally introduced the bipartisan FAIR BET Act in July 2025 to head off the reduction, called on House leadership to bring the legislation to the floor for a full vote without delay.
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“After 14 months of fighting to get this commonsense, bipartisan fix through committee, we must now encourage the House to approve this measure before Jan. 1, 2027,” Titus said. “This would stop the reduction to 90 percent from taking effect and ensure gamblers across the nation do not pay this tax on phantom money they never won.”
Under the planned reduction, gamblers who break even over the course of a year could still face significant income tax liabilities on gross winnings without being allowed to fully write off matching losses. Titus criticized the original alteration in tax law as a penalty on both professional bettors and recreational casino patrons.
While welcoming the committee’s approval, Titus voiced frustration over legislative delays, pointing out that lawmakers previously heard testimony on the issue during a field hearing held in Las Vegas last summer. With Congress scheduled for an election recess, she emphasized that both the House and Senate must act quickly once back in session.
The push to restore the full write-off has gathered broad support from 25 bipartisan co-sponsors alongside major casino and sports betting operators, including MGM Resorts International, Caesars Entertainment, Wynn Resorts, DraftKings, FanDuel, the American Gaming Association and the Nevada Resort Association.
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