The Rules Committee has ruled against the Gambling Deduction FAIR BET Act.

The House Rules Committee on Tuesday blocked an attempt to include the FAIR BET Act in the National Defence Authorization Act (NDAA). The One Big Beautiful Bill (OBBA), which was passed in July, changed the complete gambling loss deduction; the FAIR BET Act aims to reinstate it.

Context

In July, the One Big Beautiful Bill was signed into law by President Trump. A clause that reduced the permitted deduction for gambling losses from its 70% level to 90% was buried in the more than 900-page measure. As a result of the modification, bettors must now pay taxes on more money than they have really won.

The timing of the new deduction cap is particularly unfortunate for Las Vegas. Because of the political and economic unpredictability, tourism has been declining. In order to reinstate the full gambling loss deduction, Nevada Representative Dina Titus swiftly introduced the Fair Accounting for Income Realized from Betting Earnings Taxation (FAIR BET) Act.

Titus attempted to expedite the process by attempting to include the FAIR BET Act in the 2026 National Defence Authorization Act (NDAA), which is a defence funding bill that Congress is required to approve. However, the House Rules Committee never heard her attempt.

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