FAIR BET Act Proponents Still Seeking To Overturn Gambling Tax Changes

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Publish Date: 09/18/2025

Fact checked by: Collin

Key Points

Supporters of the FAIR BET Act are continuing to seek to a return to previous gambling tax laws
They are trying to get their bill passed through Congress
The recently-passed Big Beautiful Bill removed some tax breaks for gamblers

Supporters of the FAIR BET Act haven't given up hope of getting their bill passed through Congress. The bill, which has bipartisan support, would restore the 100% gambling loss tax deduction.

Among the provisions inserted in the One Big Beautiful Bill Act (OBBBA), pushed through Congress at the behest of US President Donald Trump, was a reduction in the tax breaks for gamblers. The maximum deduction for losses from gambling was downsized to 90%.

An attempt to attach the FAIR BET Act to the recent 2026 National Defense Authorization Act (NDAA) failed. The change to the gambling tax deductions was achieved as a last-minute attachment to OBBBA.

Undaunted, FAIR BET Act proponents are giving it another try. And now they have company. Nevada Senator Catherine Cortez Mastro and Mississippi Senator Cindy Hyde-Smith reintroduced the WAGER (Withdrawing Arduous Gaming Excise Rates) Act. This bill would amend the Internal Revenue Code of 1986 to exempt sports betting from the tax on authorized wagers.

Nevada Senator Catherine Cortez Mastro

“In Nevada, legal sports betting is a thriving industry that adds to the world-class experience of watching our championship-level professional sports teams,” Cortez Masto said in a press release. “It’s past time to exempt legal sports betting from outdated taxes that are actually incentivizing illegal sportsbooks. This is bipartisan, commonsense legislation that will help boost local economies across the United States.”

Passage of the FAIR BET Act remains a possibility

The FAIR BET Act, introduced by Nevada Rep. Dana Titus, also remains on the table. It would simply restore the previous 100% tax deduction on gambling losses. This bill now has 13 co-sponsors from both sides of the aisle.

"I’m back in DC, which means the fight for the FAIR BET Act continues," Titus posted on her social media.

Cortez Mastro said this change in the tax deduction for gamblers could do "irreparable harm" to the US legal and regulated gambling industry.

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Professional gamblers are hurt the most by this gambling tax deduction

Lawmakers believe that by taking tax breaks away from gamblers, the federal government is driving American gamblers into the waiting arms of illegal offshore gambling sites.

Professional gamblers have been outspoken over their opposition to the tax change. Professional poker player Phil Galfond believes that this change in the law will drive players out of the game. He correctly points out that even if a gambler were to break even, the new tax means they will lose 10% since they can only claim 90% of losses as a tax deduction.

“This new amendment to the One Big Beautiful Bill Act would end professional gambling in the US and hurt casual gamblers, too," Galfond posted on X, the social media site formerly known as Twitter. "You could pay more in tax than you won.”

Congress appears to be divided on this issue

While there are many proponents of restoring the old gambling tax deductions, there are just as many opponents to the concept. If not more.

The FAIR BET Act has been defeated three times already. The WAGER Act also failed to gain passage in a previous attempt in 2024.

There are larger issues facing Congress. These include the potential for a complete government shutdown at the end of September. Those factors might make it harder for these gambling bills to gain any traction among lawmakers.

There is still time for Congress to reverse the gambling tax reduction. The change is set to take effect January 1, 2026, giving Congress a few months to act.

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