House Rules Panel Stops FAIR BET Act as 2026 Gambling Tax Change Approaches
The FAIR BET Act, aiming to restore full gambling loss deductions, was blocked in the House Rules Committee ahead of 2026 tax changes.Summary
The FAIR BET Act, championed by Rep. Dina Titus, has stalled in the House Rules Committee, preventing its inclusion in the National Defense Authorization Act. This act sought to reverse recent federal tax changes that limit gambling loss deductions, currently allowing deductions only up to the amount of winnings and soon to be capped at 90% of losses starting in 2026. Titus argues the new rules could lead to taxation of unearned money and push gamblers towards unregulated offshore platforms. While gambling industry groups support the act, citing fair reporting and market regulation, opposition from conservative groups and some lawmakers, along with resistance in the Senate Finance Committee, have halted its progress. Tax experts advise gamblers to prepare for the 2026 changes, as even breaking even could result in owing federal taxes, and future attempts to alter the deduction limit remain uncertain.
(Source：Gamblingnews)