Attempts to repeal the gambling tax provision in the One Big Beautiful Bill Act hit another roadblock last week.
Rep. Dina Titus (D-NV) had hoped to attach her bipartisan FAIR BET Act to a spending bill, but the House Rules Committee rejected that move.
The Big Beautiful Bill, which went into effect Jan. 1, changed the law on gambling deductions. Gamblers can now deduct just 90% of their losses from taxes, which could result in some paying taxes despite a losing year. The FAIR BET Act would fix that change, once again allowing gamblers to deduct 100% of their losses from taxes.
Poker players, casino executives, and others have warned that the tax provision could have a major negative impact on the gaming industry. Lawmakers will now have to find another way to advance the legislation.
Major Setback
After the FAIR BET Act was rejected, Titus told the Las Vegas Review-Journal that she was “disappointed that the House Rules Committee has decided not to move forward with legislation to restore the full 100% deduction for gambling losses.”
The representative and other lawmakers have been working for months to restore the 100% deduction. But thus far haven’t had any luck getting the issue to a full vote in the House or Senate.
Another effort to restore deductions, HR 6985, was recently filed by Rep. Steven Horsford (D-NV) and Rep. Max Miller (R-OH). Known as the FULL HOUSE Act, it lingers in the House Ways and Means Committee.
Sportsbooks Could Suffer The Most
Optimism isn’t high on prediction markets. As of Tuesday morning, Kalshi users gave passage before April just a 10% chance. Only 39% believed the issue would be resolved before 2027.
In December, Poker Hall of Famer and 10-time World Series of Poker bracelet winner Erik Seidel announced that the provision may put him into semi-retirement.
The same month, several casino executives met with Ways and Means Chair Rep. Jason Smith (R-MO) to share their concerns about the tax change.
One study recently reported that the tax change could cause an $18 billion hit to annual sports betting handle.
