Mastro introduced the FULL HOUSE Act, aimed at restoring the full deduction for gambling losses. She followed a similar effort in the House, led by Rep. Dina Titus, also from Nevada.

The controversial provision, buried deep within the 940-page tax-and-spending package, went unnoticed by many lawmakers. However, after the gambling world raised the alarm, many stated they would vote to repeal it.

With the change, gamblers would be able to deduct 90% of gambling losses, compared to the current 100% (up to the winnings). That means many recreational and professional gamblers could be required to pay taxes even if they don’t make a profit.

Sen. Young Objects Over Unrelated Issues

On July 10, Mastro attempted to pass her legislation using unanimous consent. That’s a procedural move that requires no objections to pass.

However, despite bipartisan support, with many Republicans acknowledging they didn’t even know about the provision, Sen. Todd Young (R-Indiana) objected. That effectively blocked the bill from advancing.

Young’s objection had nothing to do with the provision or unfavorable views on gambling. Instead, he used the moment to push for unrelated policies. They include exceptions for religious college endowments and other tax adjustments that Democrats previously rejected.

Young said he supports the policy but would only agree to undo it if Democrats accepted other provisions in return.

“I strongly support the underlying bill, but will have to object unless you can agree to my request,” Young said on the Senate floor.

Efforts in the House Continue

Although the Senate effort has stalled for now, Cortez Masto has indicated she plans to continue pushing for the FULL HOUSE Act through regular legislative channels.

Meanwhile, efforts continue in the House, where Rep. Titus introduced the FAIR BET Act on July 7.

Titus was among the first to pledge to reverse the measure as soon as the Senate passed it. After the House passed the Senate’s version without changes, Titus stated that she wanted to offer an amendment. However, House managers refused to accept any.

The FAIR BET Act is expected to proceed through committee review in the House in the coming weeks.

The post Senate Republicans Block Effort to Reverse Gambling Tax Hike Under Big Beautiful Bill appeared first on CasinoBeats.

Rep. Titus of Nevada posted on X that she would be introducing the “the FAIR BET Act, the Fair Accounting for Income Realized from Betting Earnings Taxation Act, to permanently restore the 100% loss deduction from gambling winnings.”

On Monday I’m introducing the FAIR BET Act, the Fair Accounting for Income Realized from Betting Earnings Taxation Act, to permanently restore the 100% loss deduction from gambling winnings.

I welcome all other members to join this common sense fix.

— Dina Titus (@repdinatitus) July 5, 2025

The proposal aims to combat what many have highlighted as an unfair tax placed on gamblers by Trump’s One Big Beautiful Bill Act. The bill passed in both chambers in narrow votes last week and now only requires Trump’s signature to be enacted at the start of next year. 

New Tax On Gamblers Could Erase Profits

In an amendment in the Senate, the BBB now contains a clause that will no longer allow bettors to offset taxes on winnings with losses completely. 

Currently, gamblers can deduct 100% of losses from winnings and then pay taxes on the remaining profits. However, the amendment limits deductions to 90% of losses, meaning that gamblers who are only breaking even, or making a small profit, could pay more in taxes than they win, resulting in net losses. 

Professional poker player Phil Galfond spoke out against the tax, commenting that it will drive gamblers to offshore betting sites. 

Galfond gave the example that if a gambler won $5.2 million but lost $5 million, then the current rules would tax the $200,000 profit. However, the change means gamblers can only deduct 90% of their losses ($4.5 million), meaning they would pay tax on $ 0.7 million. 

At the current gambling tax rates, the winning gambler would pay $74,000 in taxes, leaving a net profit of $126,000. The change in the deduction rule would see the gambler paying $259,000 in taxes, leaving a net loss of $59,000. 

FAIR BET Act Gains Traction But Faces Opposition

The FAIR BET Act would restore 100% deductions and seems to be a popular policy. In a post on X following the amendment, Titus wrote, “I’m working on a legislative fix that fairly treats gaming losses in the tax code.”

The post received over 1 million views. Speaking to KNTV News, Titus said this was more than any other post she has made. Her latest post, confirming that she would be introducing the bill on Monday, July 7, has almost reached 1 million views at the time of writing. 

Most responses are in favor of reversing the rule change; however, not all comments are positive, with some objecting to any deductions for gambling. 

For example, one user commented, “Hold up. I can’t get my student loans forgiven, but some grandma in Jersey can write off her losing from her addiction?!”

Others called for earlier intervention to prevent the amendment from being included in Trump’s bill in the first place. 

Nevada Democrat Titus said she had tried to suggest an amendment to the bill, but House managers refused to accept any. Instead, she will introduce new legislation; however, whether Republicans, who control the House, will support the proposal remains to be seen.

It is estimated that the tax change could generate over $1 billion in federal revenue over eight years, but Titus believes this estimate is overstated. 

Gambling A Target For Tax Collectors

Lawmakers across the country have also been introducing additional taxes on gambling. 

Illinois’s controversial decision to tax both gross gaming revenue and every bet placed has been met with strong opposition from gambling companies. 

In response, FanDuel, DraftKings, and Fanatics have all stated that they will pass the cost on to users and introduce a betting surcharge. 

Elsewhere, Louisiana, New Jersey, and Maryland have also approved an increase in gambling taxes. The states’ rates rose from around 15% to around 20%.

The Sports Betting Alliance (SBA), comprising five of the country’s leading sportsbooks, has spoken out against the hikes, warning that bettors will turn to illegal gambling sites if regulators continue to target gambling as a source of tax revenue. 

It is estimated that the country collected over $15 billion in tax revenue from gambling last year, representing an 8.5% increase from 2023. 

The post FAIR BET Act Aims Reverse Gambling Tax Rule In Trump’s Big Beautiful Bill appeared first on CasinoBeats.

The small provision changes the tax deduction cap from 100% of gambling losses up to the winnings down to 90%. While a small change on the surface, the change could have significant implications for the gambling industry.

Once President Trump signs the bill, it will go into effect at the beginning of 2026.

What’s The Change?

Under current tax law, gamblers can deduct losses up to the amount of their winnings. Professional gamblers can also deduct related expenses, such as travel and lodging, as long as those and related losses don’t exceed winnings. For example, if an individual wins $100,000 in gambling but then loses the entire amount, they don’t owe anything.

However, the Senate’s amendments to the One Big Beautiful Bill Act will limit the deductions to 90% of the gambling losses incurred. As a result, gamblers could now owe taxes even if they don’t make a profit. Significantly, they can owe taxes even if they have substantial net losses.

For example, a gambler wins $100,000 but loses $100,000. Currently, they don’t owe anything, as they can deduct all of their losses, which equal the winnings.

With the upcoming changes, in the same scenario, the gambler can only deduct $90,000 (90% of the $100,000 in losses). That results in $10,000 in taxable income.

As income from gambling is taxed at about 24%, the gambler now owes approximately $2,400 in taxes, despite making no profit.

Nevada Congresswoman Plans Repeal Effort

The day after the Senate passed the bill, US Rep. Dina Titus from Nevada said that she was “working on a legislative fix that fairly treats gaming losses in the tax code.”

As the House passed the bill without changes, Titus told Las Vegas’ Channel 13 that she wanted to offer an amendment. However, House managers refused to accept any.

She added that she plans to bring a bill to repeal the provision next week. However, Titus, a Democrat, faces an uphill battle in a Republican-controlled House.

Titus has also stated that she believes the Joint Tax Committee’s estimates of $1.1 billion in federal revenue over eight years are overstated, with Republicans seeking additional funds from anywhere to mitigate the impact of the bill’s tax cuts.

In addition, she said the provision punishes honest people who do the right thing to report their winnings. The change would drive many to offshore gambling or to lie about their winnings to avoid additional taxation.

Industry Impact: Threat to Professional Gamblers and States

Professional gamblers who stand to lose the most, as well as industry experts, have been quick to criticize the deduction cap.

Professional poker player Phil Galfond said the change “would end professional gambling.” He later clarified that while this may be an overstatement, many professionals would no longer be viable. He warned that both professional and recreational gamblers might turn to offshore platforms to avoid new tax burdens.

Captain Jack Andrews, a professional sports bettor and industry educator, called it “an existential threat” to professional gambling in the US.

Tax expert and poker player Russell Fox echoed these concerns. He noted that many in the industry were unaware of the provision and will work to reverse it.

Beyond professionals, recreational gamblers could also face unexpected tax bills, discouraging legal gambling and reducing participation. Some individuals may opt for offshore platforms to avoid taxation.

While the scale is unknown, gambling establishments and online platforms would likely feel the ripple effect. That’s due to a decrease in wagering volume, especially among high-stakes and frequent bettors, who drive liquidity.

Moreover, state governments may ultimately lose tax revenue as players gamble less or shift to unregulated options.

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