The Latest on the FAIR BET Act: A Q & A With Congressional Aide Dick Cooper

[Wandering Eyes]

When the details of Donald Trump's “One Big Beautiful Bill” were introduced, there was a welcome surprise for horseplayers as well as all gamblers. It included a provision whereby gamblers could only deduct 90% of their losses from their winnings. For example, if a gambler collected $100,000 in winning bets during a year while also losing $100,000, he or she would have to pay taxes on $10,000, even though no profit was actually made.

The new law went into effect on Jan. 1. Unless something changes, when gamblers file their 2026 tax returns next year they will not be allowed to deduct 100% of their losses.

Rep. Dina Titus, a Democratic Congresswoman from the gambling mecca of Nevada, sprung to action and introduced the FAIR BET Act, which would restore a gambler's right to deduct 100% of his or her losses from gambling winnings. Titus has called the policy change a “tax increase on Americans who gamble.”

She introduced her bill in July, but, despite partisan support, it has yet to pass. In the most recent development, The FAIR BET Act was officially rejected as an amendment to the National Defense Authorization Act (NDAA) by the GOP-controlled House Rules Committee.

To get the latest on the FAIR BET Act and insights into whether or not it will eventually pass, the TDN reached out to Titus's office with a list of questions. They were answered by her communications director Dick Cooper.

TDN: You introduced the Fair Bet Act on July 7, 2025. Can you please bring us up to speed regarding what has happened to the bill since you introduced it and where things currently stand?

DC: Since the bill was introduced, we have garnered 24 bipartisan co-sponsors. Representative Titus recently sent a letter to Ways & Means Chair Jason Smith and Ranking Member Richard Neal urging them to take up a legislative fix to restore the gambling loss deduction to 100% at their next markup. She also filed the FAIR BET Act as a discharge petition, to bypass committee inaction and bring the bill directly to the floor for a vote. While taxpayers will first feel the effects of the 90% gambling loss deduction when they file next year, many, in anticipation of potentially onerous tax liabilities, have already begun stopping or scaling back their gambling activity. This fix needs to get done sooner rather than later, and we have a broad coalition of support. The bill has picked up widespread industry support including: the American Gaming Association, MGM, DraftKings, FanDuel, Caesars, Wynn, the Nevada Resort Association and the National Thoroughbred Racing Association. Several outside groups have also expressed their support for the restoration of full deductibility including Americans for Tax Reform, The Tax Foundation, and The American Institute of CPAs.

   TDN: What now is the best way forward to get the bill passed?

DC: The next step is continuing to pursue multiple legislative vehicles–inclusion in a broader tax package, committee action in Ways & Means, or attachment to a must-pass vehicle like appropriations or a CR (Continuing Resolution). There is concern that if you fix this mistake from the “One Big Beautiful Bill,” that will open the floodgates for other members to want to fix other issues they had with the bill which was Trump's landmark piece of legislation. It is for that reason that attaching this provision to a must-pass vehicle remains the most likely option.

   TDN: Horse racing is a vital industry in Kentucky. Have you received support from your colleagues there? Kentucky Congressman Andy Barr has always been viewed as being very pro-horse racing. Has he weighed in with you regarding your bill? Have any other lawmakers from Kentucky offered their support?

DC: Yes, Congresswoman Titus and Congressman Barr are both cosponsors of each other's bills. Representative Morgan McGarvey (D-KY) is also a cosponsor of both bills.

   TDN: How frustrating is it to you that have been working on this for about six months and your bill still seems to be hanging in limbo? Do you still remain confident that you will eventually find a way to get the FAIR BET Act passed?

DC: Of course, it can be frustrating when something that has broad bipartisan support doesn't move as quickly as we would like. Legislative timing, however, is often driven by process and available vehicles, not the merits of the policy. The Congresswoman remains confident that this will ultimately get fixed. The goal is to ensure it is resolved before taxpayers begin feeling the full impact when they file.

   TDN: The National Thoroughbred Racing Association has come out in support of your bill. But has that been enough? Could the horse racing industry be doing more to help your cause?

DC: The racing industry has been a strong partner on this issue. The most important thing is education and engagement. Reach out to your members of Congress and explain how this issue affects you personally. Emphasize that this is about fair taxation, not special treatment. Lawmakers respond when they hear directly from constituents that a policy has real-world consequences. Continued engagement from industry stakeholders and bettors themselves is important because lawmakers respond when they hear directly from the people affected.

TDN: We have been told by many serious horseplayers that they will be forced to stop betting on the sport if they can no longer deduct 100% of their losses. This could be catastrophic for horse racing. Do you believe the industry is fully cognizant of what this could mean for its overall health?

DC: That is a very real concern. It unfairly burdens professional gamblers and casual players alike and will inevitably drive players toward offshore and unregulated markets where consumer protections are nonexistent, thereby undermining responsible gaming efforts nationwide. Recently, the Congresswoman spoke with one of the most accomplished and respected players in the history of professional poker, Erik Seidel, who explained how this tax change will put him in semi-retirement. Conversations like that reinforce why this matters for players and the broader gaming ecosystem.

TDN: To all horseplayers, this obviously seems extremely unfair. What do you hear from the elected officials on the other side of the issue regarding their support of these new tax/gambling rules? What, possibly, could be their justification for supporting what seems to be nothing more than an unfair tax on gamblers?

DC: In many cases, the issue stems from misunderstanding the policy. Some assume this only affects professional gamblers, but in reality, it impacts casual bettors and everyday players as well. Others are simply just anti-gaming.

   TDN: When it comes to racing, as well as other forms of gambling, could this force bettors to start doing business with unregulated offshore betting sites.

DC: That is certainly a risk. If legal, regulated wagering becomes tax-disadvantaged, bettors will look for alternatives in unregulated offshore markets. That would undermine consumer protections and divert activity away from regulated U.S. operators and jobs.

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