Ways and Means Chair Says Both Sides of Aisle Working Towards Gambling Tax Deduction Solution

• House Ways and Means Committee Chairman Jason Smith (MO-R) today said both sides of the aisle are working towards a solution for the recent reduction in gambling tax deductions
• Smith presented the One Big Beautiful Bill Act to the public in a field hearing in Las Vegas, NV
• Rep. Dina Titus (D-NV) and Rep. Steven Horsford (D-NV) criticized the bill, but thanked Smith for being open to a solution

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The Chair of the House Ways and Means Committee at least seems open to finding a solution to a serious problem for professional gamblers caused by the recently approved One Big Beautiful Bill Act.

When pressed by Rep. Steven Horsford (D-NV) to support Rep. Dina Titus’s (D-NV) FAIR BET Act, which will restore a professional gamblers’ ability to deduct 100% of gambling losses from their taxes, Chairman Rep. Jason Smith (MO-R) said he is open to finding a solution to the gambling tax deduction problem.

“For those of you concerned about this change, members on both sides of the aisle have heard you and many members on both sides of the aisle are working to address it before it goes into effect on Jan. 1,” he said.

Field Hearing on Big Beautiful Bill Act

Smith today presented the One Big Beautiful Bill Act and its potential benefits for American families and workers to the public at a field hearing in Las Vegas, NV.

In his opening remarks, Smith said the Senate included the reduction in gambling loss deduction in the One Big Beautiful Bill Act, not the House.

Prior to hearing testimony from the public on the bill, Horsford and Titus criticized the bill and its negative impact on the Nevada public, the Las Vegas gaming industry, and professional gamblers.

Included in the massive piece of legislation was a change to the Internal Revenue Code that negatively impacts professional gamblers. Under the new amendment, professional gamblers are only allowed to deduct 90% of their losses in a year.

Horsford opened his comments by asking for Smith’s commitment to supporting the FAIR BET Act, which restores the provision that allows professional gamblers and sports bettors to deduct 100% of their losses from their taxes.

While not saying he would support the bill, Smith seemed open to finding a solution to the problem.

“I’ve been crystal clear. We’ll look at what avenues we can to address the problem that the Senate created,” he said.

Titus thanked Horsford for his support of the FAIR BET Act, as he is a cosponsor, and said it is “great” that Smith will work towards finding a solution for the reduction in deductions for professional gamblers.

“It certainly targets gaming and tourism. I am very glad to hear the chairman say he’d work with us to undo that reduction in deductions for gaming losses,” Titus said.

She did, however, criticize the Senate for its original inclusion and the House accepting no amendments on the legislation.

“The Senate did put it in there, but it came back to the House, and they wouldn’t accept any amendments and they all voted for it. Let’s be sure we know who’s responsible and let’s work together to try and fix it,” Titus noted.

FAIR BET Act Has Bipartisan Support

The FAIR BET Act is now up to 10 co-sponsors and is receiving bipartisan support among her colleagues.

Rep. Ro Khanna (D-CA), Rep. Troy Nehls (R-TX), Rep. Jefferson Van Drew (R-NJ), Rep. Mark Amodei (R-NV), Rep. Susie Lee (D-NV), Rep. Gil Cisneros (D-CA), Rep. Chris Deluzio (D-PA), Rep. Darren Soto (D-FL), and Rep. Guy Reschenthaler (R-PA), and Horsford have all come out in support of the legislation.

Detractors of the One Big Beautiful Bill Act have said the changes to the gambling tax code will push professional gamblers to the black markets, decreasing business to licensed operators and companies in the country.