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Published: July 9, 2025

Senate Bill To Roll Back Gambling Losses Tax Deduction Cut Coming Thursday

Nevada Democratic Sen. Catherine Cortez Masto will introduce legislation to the Thursday to repeal a tax provision on gambling losses this is part of President Donald Trump’s recently passed "One Big Beautiful Bill Act” (OBBBA).
 
OBBBA, which passed July 4, includes a provision stating that gamblers can only deduct 90% of their losses. Previously, gamblers could deduct 100%, so the bill poses concern that sharp bettors will take their business offshore, which will cost state tax dollars.
 
Casino Reports obtained a copy of Cortez Masto’s bill and her office told Casino Reports that the bill — ‘‘Facilitating Useful Loss Limitations to Help Our Unique Service Economy” (FULL HOUSE Act), will be introduced via unanimous consent. 
 
"Any one senator can object to the bill’s passage, but we’re hopeful it could pass given the bipartisan support for fixing this issue,” a Cortez Masto’s spokesperson said.
 
Titus filed similar bill Monday
 
The bill reads that gamblers should not be taxed on losses, effectively returning to the pre-OBBBA status quo of 100% deduction. The bill states: "Losses from wagering transactions shall be allowed only to the extent of the gains from such transactions.”
 
Nevada Democratic Rep. Dina Titus filed a similar bill Monday, the FAIR BET Act, to repeal the item.
 
"It is slightly different than Representative Titus’ language, but does effectively the same thing,” a spokesperson from Cortez Masto’s said in an email to Casino Reports.
 
The FAIR BET Act calls to amend the OBBB’s wording from "90 percent” to "100 percent,” hoping to revert to the current law. Titus’ legislation has been filed in the House and has been assigned to the Ways and Means Committee, but does not yet have a hearing date.
 
In response to Sen. Cortez Masto’s bill, Rep. Titus said on X, "Any bill or unanimous consent action in the Senate would be just for show. My FAIR BET Act is the real fix to the Senate’s error in lowering the gambling loss deduction to 90%.”

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(PRESS RELEASE) -- Congresswoman Dina Titus (NV-01), co-chair of the Congressional Gaming Caucus, today introduced the Fair Accounting for Income Realized from Betting Earnings Taxation (FAIR BET) Act that would restore the 100% deduction for gambling losses.

“The recently passed budget bill included a provision inserted by Senate Republicans without consent of the House that imposed a tax increase on Americans who gamble by reducing from 100 percent to 90 percent the amount of losses they can deduct from gambling winnings for their income taxes,” Congresswoman Titus said. “My FAIR BET Act would rightfully restore the full deduction for losses so gamblers don’t pay taxes on money they haven’t won.

“This common-sense legislation will bring fairness back to gaming taxation, making sure that gamblers can fully deduct losses when they report their winnings. It gives everyone –from recreational gamblers to high-stakes gamblers -- a fair shake. We should be encouraging players to properly report their winnings and wager using legal operators. The Senate change will only push people to not report their winnings and to use unregulated platforms.”

https://www.casinocitytimes.com/news/article/nevada-rep-seeks-to-restore-full-gaming-loss-deduction-260570