Congresswoman Titus Links FAIR BET Act to Defense Bill for Tax Reform

Ever wonder how laws really get made? Nevada Congresswoman Dina Titus is playing legislative chess, quietly trying to pass her FAIR BET Act through a defense bill! This act aims to reverse a controversial gambling tax change that could hit your wallet. Will this clever move pay off for bettors and the gambling industry, or is it a gamble too far? What are your thoughts on this strategy?

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Nevada Congresswoman Dina Titus is employing a strategic legislative maneuver to advance her critical Fair Accounting for Income Realized from Betting Earnings Taxation Act, widely known as the FAIR BET Act. This calculated move involves attaching the proposed legislation to the must-pass 2026 National Defense Authorization Act, significantly increasing its chances of becoming law and impacting the entire gambling industry.

The core objective of the FAIR BET Act is to reverse a controversial tax policy modification initiated under President Donald Trump’s One Big Beautiful Bill Act. This earlier change, set to take effect in January 2026, dramatically reduced the percentage of gambling losses that individuals could deduct for tax purposes, specifically from 100% down to 90%, drawing widespread criticism.

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This reduction has ignited strong opposition from both the robust gambling industry and individual bettors across the nation. Critics argue vehemently that this adjustment effectively imposes a tax on “phantom income,” money that gamblers never truly realized, leading to unfair financial burdens and distorting the economic reality of their wagering activities.

Congresswoman Titus, who also co-chairs the Congressional Gaming Caucus, initially introduced the one-line FAIR BET Act bill in July. However, like many legislative proposals, it encountered hurdles and became stalled in the House Ways and Means Committee, necessitating an an alternative approach to ensure its progression.

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By strategically attaching her amendment to the monumental National Defense Authorization Act, a piece of legislation considered essential and virtually guaranteed to pass each year, Titus is utilizing a long-standing and often effective legislative strategy. This tactic is a well-known method to fast-track bills that might otherwise face prolonged delays or even outright failure within the complex legislative process.

Historically, such legislative maneuvering has proven successful; a notable precedent from approximately two decades ago saw the passage of the Internet Gambling Prohibition Act, which was similarly incorporated as an amendment into a separate port security bill. This demonstrates the viability of Titus’s current legislative strategy.

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The passage of the FAIR BET Act holds particularly significant implications for states such as Nevada, where the thriving gambling industry serves as a foundational pillar of the state’s economy. The proposed tax reform is seen as vital for maintaining economic stability and fairness within these crucial regional sectors.

Despite the potential benefits for the gambling world and individual bettors, the strategy of embedding a significant tax policy shift within a defense spending bill has not been without its critics. Opponents argue that such a tactic represents a case of legislative overreach, blurring the lines between distinct policy areas and potentially sidestepping proper deliberation.

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Currently, the amendment awaits rigorous scrutiny before the House Rules Committee, with members slated to cast their votes in the coming weeks. Should it successfully navigate this phase, the FAIR BET Act stands a strong chance of being included in the annual defense package, ultimately making its way to the president’s desk and securing a substantial victory for gambling stakeholders nationwide.

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