Lawmakers have rejected an attempt to add the bill to the Defense budget
A push to roll back a controversial new gambling tax has stalled in Washington, leaving US poker players and other gamblers bracing for changes set to take effect in 2026.
Unfortunately, the GOP-controlled Rules Committee did not accept the FAIR BET Act as an amendment to the NDAA. This was an easy fix that should have been adopted. Nonetheless, I will continue to build support to restore the 100% gambling loss deduction.
— Dina Titus (@repdinatitus) September 9, 2025
Representative Dina Titus of Nevada had introduced the “Fair BET Act” in hopes of blocking provisions within the so-called Big Beautiful Bill, a law that adjusts how gambling winnings and losses are reported for federal tax purposes. She attempted to attach her measure as an amendment to the National Defense Authorization Act (NDAA), but the House Rules Committee declined to consider it, effectively closing off that path for now.
At the center of the dispute is a rule that will limit gamblers to deducting only 90% of their losses when filing taxes. Critics argue this could create situations where individuals are taxed on income they never actually pocketed. For poker players and other high-volume gamblers, the change could mean a significant financial hit, especially in states where gaming contributes heavily to the economy.
Industry voices have been vocal in their opposition. Tax specialist Russell Fox noted that while the law is widely disliked and could eventually be repealed, he expects it will go into effect as written in January 2026. That timeline leaves players and operators little choice but to prepare now, reviewing their accounting practices and tax planning strategies.
The gambling industry in Nevada, which has already faced challenges from fluctuating tourism numbers, has raised concerns about the added burden the new rules may place on both recreational and professional players. With the Fair BET Act blocked from advancing through the NDAA, supporters of repeal will need to seek another legislative avenue.
For the moment, gamblers nationwide are left waiting, with uncertainty hanging over how the tax changes will affect their bottom lines in the coming year.
