Congresswoman Dina Titus of Nevada has introduced a bill that would allow gamblers to continue to deduct 100 per cent of gambling losses from their winnings.
The bill by Representative Titus, co-chair of the Congressional Gaming Caucus, is in response to the recently passed federal budget bill which includes a provision to limit deductions to 90 per cent of gambling losses.
“The recently passed budget bill included a provision inserted by Senate Republicans without consent of the House that imposed a tax increase on Americans who gamble by reducing from 100 percent to 90 percent the amount of losses they can deduct from gambling winnings for their income taxes,” Congresswoman Titus said in a statement on Monday.
“My FAIR BET Act [Fair Accounting for Income Realized from Betting Earnings Taxation Act] would rightfully restore the full deduction for losses so gamblers don’t pay taxes on money they haven’t won.
“This common-sense legislation will bring fairness back to gaming taxation, making sure that gamblers can fully deduct losses when they report their winnings. It gives everyone –from recreational gamblers to high-stakes gamblers — a fair shake,” Rep. Titus added. “We should be encouraging players to properly report their winnings and wager using legal operators. The Senate change will only push people to not report their winnings and to use unregulated platforms.”
The lower gambling loss deduction in the budget bill is expected to impact only a small number of gamblers, with little impact on recreational players.