Wager Act, a Gambling Losses Bill, Heads to Committee
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Photo: Chad B. Harmon
Recently, Rep. Dina Titus's (D-NV) Fair Accounting for Income Realized from Betting Earnings Taxation (Fair Bet) Act, which would restore the gambling losses tax deduction to 100%, got shot down as an amendment to a defense bill. The gambling losses tax deduction currently stands at 90% after being changed in the One Big Beautiful Bill Act. While the Fair Bet Act had gained support on both sides of the aisle, Rep. Titus's bill has languished in the Ways and Means Committee, most likely because of the current Republican trifecta in the House, Senate, and the Presidency.
Rep. Titus tried to force the issue by introducing the Fair Bet Act as an amendment to the 2026 National Defense Authorization Act (NDAA), which is a bill that must be authorized by Congress each year. It ended up not gaining enough votes. However, that wasn't the only bill introduced in the House that sought to remedy this issue.
On the flip side, Rep. Andy Barr (R-KY) introduced the Winnings and Gains Expense Restoration (Wager) Act, which has since been moved to the House Ways and Means Committee, in hopes of restoring the deduction. In effect, the Fair Bet Act and the Wager Act do the same thing—restore the deduction to 100%, but Barr's bill is seen as having a better chance to pass, because of the support in Congress Republicans currently enjoy.
(The above is one segment of a legislative update provided Oct. 1 by the National Thoroughbred Racing Association.)