Bill introduced to combat ‘anti-gambling’ measure in Trump’s budget bill

A Nevada lawmaker has proposed a bill that would restore a gambler’s ability to deduct 100 percent of losses on annual tax filings, which was altered in the budget reconciliation bill signed by President Donald Trump last week.

U.S. Rep. Dina Titus, D-Nev., introduced the Fair Accounting for Income Realized from Betting Earnings Taxation (FAIR BET) Act on Monday. The bill is co-sponsored by U.S. Rep. Ro Khanna, D-California.

Titus, who brought attention to the “anti-gambling” provision added to the Senate version of the bill by a lawmaker from Idaho before it passed the House and was signed by the president, called the FAIR BET Act “common-sense legislation,” adding it “will bring fairness back to gaming taxation.”

The changes to the tax code for gamblers in the recently passed One Big Beautiful Bill Act raised flags in the casino industry because it makes it more difficult for professional gamblers, such as poker players and sports bettors, to turn a profit. The concern among many in the gaming industry is that those players would turn to unregulated or offshore online casinos, which would negatively impact domestic markets such as Las Vegas and Reno.

“My FAIR BET Act would rightfully restore the full deduction for losses so gamblers don’t pay taxes on money they haven’t won,” Titus said Monday. “It gives everyone — from recreational gamblers to high-stakes gamblers — a fair shake.”

She said the government “should be encouraging players to properly report their winnings and wager using legal operators,” and suggested that the recent changes “will only push people to not report their winnings and to use unregulated platforms.”

Derek Stevens, co-owner of Circa, The D and Golden Gate hotel-casinos in downtown Las Vegas, has been visible on social media throughout the holiday weekend supporting Titus’ efforts. Stevens also encouraged Titus to push for the elimination of the .25 percent sports betting excise tax and to raise the slot reporting threshold from $1,200 to $2,000 (Titus has introduced multiple bills to raise the threshold during her tenure).

The casino owner hosted Trump at Circa in January when the president was campaigning to eliminate federal taxes for tipped employees such as table games dealers and cocktail servers.

The gambling tax code amendment was included in the budget bill by U.S. Sen. Mike Crapo, R-Idaho. It limits the amount gamblers are able to deduct from their winnings to 90 percent of losses. For example, if someone won $100,000 during a trip to a Las Vegas casino but lost $100,000 for the year, they would have to pay taxes on $10,000 rather than pay zero under the current tax code.

As it currently stands, the amendment will go into effect next year.

Contact David Danzis at ddanzis@reviewjournal.com or 702-383-0378. Follow @AC2Vegas_Danzis on X.