Rep. Dina Titus Continues the Fight for Full Federal Gambling Loss Deduction

By juan365 slots guides · September 16, 2026

Will You Pay Taxes on Money You Lost? The Fight for the Full Gambling Loss Deduction (2025–2026)

The short answer: Under current federal law (post-July 4, 2025), you can only deduct 90% of your gambling losses, meaning you could pay taxes on money you never actually took home. A bipartisan effort led by Rep. Dina Titus (D-NV) and Sen. Catherine Cortez Masto (D-NV) is fighting to restore the 100% deduction, but the legislation remains stalled in committee as of late 2025, facing procedural hurdles and competition from other tax priorities like the WAGER Act.

H2: What Exactly Changed with the Gambling Loss Deduction, and Why Should a Filipino-American Player Care?

Before we dive into the politics, let’s break down the actual change. For decades, the US federal tax code allowed gamblers to deduct 100% of their gambling losses (up to the amount of their winnings) when itemizing deductions. This prevents the government from taxing “phantom income.”

But when the One Big Beautiful Bill Act was signed into law on July 4, 2025, by President Donald Trump, that number dropped to 90% .

Here’s a concrete example para malinaw (to be clear):

You win $10,000 playing poker at Resorts World Manila (or in Las Vegas).
You lose $10,000 over the course of the year (documented through win/loss statements).
Old rule (pre-2025): Your taxable income from gambling is $0 ($10,000 winnings - $10,000 losses = $0).
New rule (2025 onwards): You can only deduct $9,000 ($10,000 x 90%). You pay tax on $1,000 of income you never actually had.

Bakit ito mahalaga sa iyo? (Why does this matter to you?) Even if you’re not a high-roller, this creates an unfair burden. The law assumes a 10% “haircut” on your losses, effectively treating you as if you profited when you didn’t. For casual slots players, lottery winners, or anyone who has a “square” year (wins = losses), this means a surprise tax bill.

Scenario (Annual Figures)	Pre-2025 Rule (100% Deduction)	Post-2025 Rule (90% Deduction)	Difference
Total Gambling Winnings	$10,000	$10,000	-
Total Gambling Losses	$10,000	$10,000	-
Maximum Deduction	$10,000	$9,000	-$1,000
Taxable Gambling Income	$0	$1,000	+$1,000
Extra Tax Owed (at 22% bracket)	$0	$220	+$220
Extra Tax Owed (at 37% bracket)	$0	$370	+$370

H2: Who is Rep. Dina Titus and What is the FAIR BET Act?

Rep. Dina Titus (D-NV) has been the most vocal critic of this change. She represents Las Vegas—the gambling capital of the world—so this is personal to her constituency.

She introduced the FAIR BET Act (H.R. 1234) to reverse this specific provision. The bill is straightforward: it amends the tax code to reinstate the 100% deduction for gambling losses retroactively for tax years beginning after December 31, 2025.

Key talking points from her campaign:

Fairness: The tax system should tax net winnings (what you actually keep), not gross receipts minus an arbitrary penalty.
Middle-Class Impact: It’s not just high-rollers. Casual bettors who visit a casino once a year and walk away with nothing are now penalized.
Economic Reality: She argues that this 10% cut acts as a federal tax on losing sessions, which disincentivizes tourism and hurts casino economies like Nevada’s.

“I urge my colleagues to include a fix to restore the 100% tax deduction for gambling losses. I will not stop fighting until we finally see this over the finish line.” – Rep. Dina Titus

H2: Bakit Hindi Pa Ito Naipapasa? (Why Hasn’t It Passed Yet?)

This is where the story gets complicated. The FAIR BET Act has strong bipartisan support (with co-sponsors from both parties), but it faces a classic Washington gridlock.

H3: The Procedural Roadblock (The Senate vs. House Fight)

The original 90% rule was part of a massive budget reconciliation bill (the “One Big Beautiful Bill Act”). Because that passed on a party-line vote, Senate GOP leaders are reluctant to reverse it unless a similar revenue offset is found.

Titus’ bill is stuck in the House Ways and Means Committee, which is the exclusive starting point for tax legislation. While Chairman Jason Smith (R-MO) has expressed support for the 100% deduction, he prefers a different vehicle: the WAGER Act.

H3: The WAGER Act vs. The FAIR BET Act

Here are the two competing attempts to fix the problem:

Feature	FAIR BET Act (Titus)	WAGER Act (Rep. Andy Barr)
Lead Sponsor	Rep. Dina Titus (D-NV)	Rep. Andy Barr (R-KY)
Introduced	January 2025 (reintroduced)	July 2025
Core Fix	Restore 100% deduction for losses	Restore 100% deduction for losses
Key Difference	Simple, direct repeal of the 90% rule. Focuses solely on the tax code.	Includes language to study the impact of problem gambling and adds stricter reporting requirements for high-volume bettors.
Status	Referred to Committee; no vote	Referred to Committee; no vote
Political Reality	Seen as a “Messaging” bill by Democrats.	Crafted to gain Republican support by adding consumer protection provisions.

Ang totoong problema? (The real problem?) Chairman Smith supports the concept of the WAGER Act, but even that hasn’t reached the floor for a vote. This suggests that while the idea is popular, there is no political will to dedicate floor time to it until broader tax reform discussions happen (likely in 2026 when parts of the Trump tax cuts expire).

H2: What are the Unintended Consequences of the 90% Rule?

Titus and her allies argue that the 90% rule was designed to stop millionaire “advantage players” from using casinos as a tax write-off. However, it hurts casual players the most. Here’s how:

From “Zero” to “Something”: A player who wins $50,000 and loses $50,000 is now taxed on $5,000 of “profit” that doesn’t exist.
State Tax Implications: While this is a federal rule, many states (including the Philippines’ BIR for citizens, though this is US-specific) use federal adjusted gross income (AGI) as a starting point. Higher federal income leads to higher state taxes in many jurisdictions.
Record Keeping Burden: To claim even the 90% deduction, you must itemize. For many players, the standard deduction is higher, making the expense worthless anyway—but they are still taxed on the 100% of winnings. This is the worst of both worlds.

H2: Ano ang Susunod? (What Happens Next?) – The Future of the Deduction

The immediate path forward is murky. Here’s what to watch for:

Lame-Duck Session (Late 2025): Congress often passes “extenders” or technical corrections in December. There is a small chance the FAIR BET Act gets attached as a rider, but it’s unlikely given the defense spending debates.
2026 Tax Reform Debate: The individual tax cuts from the 2017 law are expiring. This will force Congress to discuss “tax expenditures,” including gambling losses. This is the most likely moment for the 100% deduction to be restored.
The “Cortez Masto” Angle: Sen. Cortez Masto (D-NV) introduced the FULL HOUSE Act in the Senate, which is identical to the FAIR BET Act. However, the Senate isn’t moving on this either.

What can you do? If you are a professional gambler (a “pro” under the Section 162 rules) or a casual player, this affects your bottom line. Currently, the only way to avoid the 90% penalty is to engage in “professional” gambling status, which has its own thresholds and audit risks.

H2: Key Takeaways for Filipino Players and US Expats

If you are a US citizen playing in the Philippines: You are subject to US federal income tax on your worldwide income, including casino winnings here in the Philippines. You can claim those losses, but only at 90% of the losses.
If you are a Filipino citizen visiting the US: The same rules apply if you win at a US casino. You must file a W-2G and claim your losses on Form 1040 (Schedule A).

Bottom line: As of late 2025, the 90% rule is the law. The fight is not over, but it will likely be resolved as part of a larger 2026 tax deal, not as a standalone victory.