119-HR-4304 Journalist Public Summary

Public Summary — 119-HR-4304 (FAIR Bet Act)

Headline Summary: Restore full tax deductibility of gambling losses (up to winnings) by changing today’s 90% cap back to 100%. (law.cornell.edu)

What It Does: The bill is a one-line fix to the tax code: it amends Internal Revenue Code §165(d) by striking “90 percent” and inserting “100 percent.” In plain English, that would again let taxpayers offset all documented gambling losses against their gambling income, but never more than they won. Today’s 90% cap can leave some bettors owing tax on “phantom income” even when they effectively break even. (congress.gov)

Why It Matters: The cap applies to both casual players who itemize and professionals, so high-volume bettors could owe tax despite having no real profit; supporters say that is unfair and could push activity to offshore or unregulated markets. Opponents counter that the cap modestly raises federal revenue and was part of a broader budget deal. (congress.gov)

• Supporters: Rep. Dina Titus (D-NV) and Rep. Ro Khanna (D-CA), the sponsors, argue the bill restores fairness so people aren’t taxed on money they didn’t really win. (congress.gov)
• Gaming industry groups including the American Gaming Association back restoring 100%, calling the 90% cap an unfair tax on “phantom income.” (americangaming.org)
• The National Thoroughbred Racing Association supports the bill; listed early co-sponsors span both parties (e.g., Troy Nehls, Jeff Van Drew, Mark Amodei). (ntra.com)
• Major operators (e.g., MGM, Caesars, DraftKings, FanDuel, Wynn) and Nevada’s resort association have publicly supported reversing the cap. (titus.house.gov)

• Opponents: Key Senate Republicans blocked a quick reversal in July 2025; Sen. Todd Young objected on the floor, and GOP backers of the cap cite revenue and negotiating priorities tied to the larger tax package. (apnews.com)
• Fiscal hawks and some commentators defend the cap as a small revenue-raiser (roughly $1.1B over ~8 years), and some also see it as consistent with limiting certain deductions. (kiplinger.com)

What’s Next: As of February 13, 2026, Congress.gov still lists H.R. 4304 as “Introduced” and referred to the House Ways and Means Committee; recent attempts to attach a fix to larger bills were blocked in committee. Supporters could try to win a committee vote, attach the language to a broader tax vehicle, or pursue other procedural routes. (congress.gov)