Top Trending Gambling News July 8, 2025: FAIR BET Act Intoduced to Allow Full Deduction of Gambling Losses

Written by :

C Costigan

Published on :

8 July, 2025

These are your top trending news stories from the world of gambling and sports Tuesday July 8, 2025. Last 24 Hours Gambling911 Impressions: 59087.

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Congresswoman Dina Titus Introduces FAIR BET Act to Allow for 100 Percent Gambling Loss Deductions

Following much controversy involving the "Big Beautiful Bill" that included language whereby gamblers could no longer deduct 100 percent of their gambling losses, U.S. Representative Dina Titus, a Democrat from Nevada, introduced legislation that would restore the full gambling deduction for losses.

The bill, Fair Accounting for Income Realized from Betting Earnings Taxation (FAIR BET) Act, seeks to undo a provision in the recently passed budget bill that limits bettors to deducting only 90% of their gambling losses against winnings on their tax returns.

“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,” Titus, a Democrat from Nevada, said in a statement.

“My FAIR BET Act would rightfully restore the full deduction for losses so gamblers don’t pay taxes on money they haven’t won,” she added.

According to poker pro Phil Galfond, the newly passed legislation creates "phantom income". Even if you break even overall, you might end up owing taxes on up to 10% of your reported winnings.

Does this mean nobody can make a living playing poker?

Galfond claims the data he is relying on comes from approximately 75 percent pros and 25 percent serious recreational players tracked over a period of time.

One individual tracked was paying $11,000 in taxes. They are now going to pay $47,000 in tax, assuming the same results.

"You can go down the list, I would say the median, somewhere in the 15% range or so, there are some ugly one's. The median is 22 percent more tax," Galfond explains.

Acclaimed gambling attorney I. Nelson Rose says the impact on gamblers and the gaming industry will be immense.

"With that new 90% limit, a frequent visitor to Las Vegas who breaks even over the course of a year, winning $200,000 and losing $200,000, no longer breaks even on his taxes. With a 90% limit, he can only deduct $180,000 in losses. So, he must pay income taxes on $20,000 in phantom winnings.

"And if he can’t prove the losses, he must pay tax on 100% of the $200,000 that was won. Winnings are often reported. To prove losses, the player either must get statements from the casino, sports book, etc., or keep a detailed session log of dates, places, bets, wins and losses.

"If you make wagers for a living, your situation is much worse. Until Trump signed his bill into law on the fourth of July, if you won $1,000,000 in total over the year, lost $910,000 and had $50,000 in ordinary and necessary business expenses you would report gambling income of $90,000 ($1,000,000 minus $910,000) and then deduct the $50,000, to have a taxable income of $40,000. The federal income tax on $40,000 is $4,562.

"Under the Trump/Republican new law, for professional gamblers losses and business expenses are lumped together and only 90% can be deducted from winnings. So, you have a total of $960,000 in combined gambling losses and expenses. You can only deduct 90% of that, or $864,000. The $1,000,000 in reported winnings must be reported, but you can only deduct $864,000, creating a taxable income of $136,000. Note that you, the professional gambler who won $90,000, will now have to pay taxes as if you had won $136,000. The federal income tax on $136,000 is $25,935."

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By Chris Costigan

Chris founded Gambling911.com in 1999 and serves as the website's publisher. He brings more than 3 decades of expertise related to the gambling and sports betting sector. Creative talent is in Chris' genes, which he brings to the G911 website. He comes from a showbiz family that includes Yankee Doodle Dandy George M. Cohan. Chris is the grandson of artist John E. Costigan, whose work appears in the Smithsonian. Chris' father was also in the news business and co-founded what is today the Union County Performing Arts Center. Chris is a graduate of Kean University.

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