Nevada Representative Dina Titus saw her amendment to restore the 100% gambling tax loss deduction blocked, as she claims the House Republican leadership blocked a debate or vote on an issue that affects every American gambler and gambling business.

Donald Trump signed the Big Beautiful Bill in July, and deep in there is a directive to cut the tax deduction from gambling losses to 90%. This means breaking even still costs money, and this could have an outsized impact on Nevada – the home of the US gambling industry. Las Vegas already has issues with a decline in the tourism industry, and the new tax regime could keep even more gamblers away from the iconic Strip.

Critics of the change say it will inevitably discourage high-stakes gamblers from coming to the US, it will push existing gamblers to offshore sites that do not issue US tax forms and sit beyond the reach of the IRS, and will be a net loss for the economy.

Titus has been vocal about changing the bill, and countered with her own FAIR BET legislation, short for Fair Accounting for Income Realized from Betting Earnings Taxation, which would have restored the original 100% tax deduction for losses. Despite support on both sides of the House, the leadership blocked the amendments.

House Reps Steven Horsford and Max Miller have both tabled their own changes to the bill and Catherine Cortez Masto sponsored their Full House Act (Facilitating Useful Loss Limitations to Help Our Unique Services Economy). There have been other proposals, too, but none of them have made an impact and now it would take standalone legislation to reverse the tax change. In the current climate, that seems unlikely.

How the New US Gambling Taxes Work

Under the new rule, a gambler who wins $1 million over a year and also loses $1 million would still be taxed as if they made $100,000 in profit, despite actually breaking even. That tax bill would apply regardless of whether the activity was recreational or professional.

House leadership has not publicly explained the decision to block debate, but lawmakers familiar with the process say tax provisions tied to the Big Beautiful Bill are being protected to avoid reopening negotiations on a package Republicans are eager to lock in ahead of the election cycle. With Congress heading into an election year and tax legislation already politically radioactive, industry observers say the chances of standalone relief passing before 2027 are slim at best.

This could be great news for the offshore gambling industry, crypto casinos and sweeps casinos, as gamblers finally tap out under the weight of government levies and look for an alternative that does indeed cost the IRS and the American taxpayer in the end.