GOP Rep. pushes to repeal Trump bill he voted for

Rep. Troy Nehls of Texas became the first GOP representative to back a Democratic-led bill aimed at repealing a tax provision embedded in President Donald Trump’s flagship spending bill, dubbed the One Big, Beautiful Bill. Knewz.com has learned that the bill, known as the FAIR BET Act, was introduced by Representative Dina Titus of Nevada and seeks to reverse a change that limits how much in gambling losses can be deducted on federal tax returns.

Rep. Nehls previously voted for Trump’s bill

Rep. Nehls previously voted for Trump’s spending bill, before backing the efforts to repeal the tax provision section. “While I proudly voted for the One Big, Beautiful Bill Act (OBBBA), which prevents the largest tax hike in American history, the Senate’s version contained a provision that I strongly disagree with,” Rep. Nehls said in a statement. He is now the first Republican to cosponsor the FAIR BET Act, introduced by Representative Dina Titus, a Nevada Democrat. The bill seeks to overturn a provision introduced by Senate Republicans that lowers the deductible portion of gambling losses on federal taxes from 100% to 90%.

What the tax provision means for gamblers

The change effectively taxes gamblers on money they did not win. Under the Senate’s addition of the provision, if a gambler loses $10,000 during one trip but wins $10,000 on another, they would still be taxed as if they had earned $1,000. Previously, the tax code allowed gamblers to fully offset winnings with losses, up to the total amount won. Nehls explained, “Prior to the passage of the OBBBA, the tax code contained a 100% deduction for gambling losses and expenses up to the amount of the individual’s winnings. This deduction was not changed in the House-passed version of the bill. The Senate, unfortunately, included a provision in their version of the legislation that reduced the allowable deduction to 90%, creating an overly punitive tax on gambling. This provision is unfair, which is exactly why I am a cosponsor of Rep. Dina Titus’ FAIR BET Act.” Critics have further said that the provision included in Trump’s bill would “harm the gambling industry, result in players reporting taxable income even if they have net losses, and potentially undermine tax compliance,” per reports.

The FAIR BET Act pushes for the restoration of full deduction

Rep. Titus, whose district includes parts of Las Vegas, introduced the bill, saying that it would apply to both professional and amateur gamblers. In a statement, Titus said the FAIR BET Act aims to reinstate the full deduction for gambling losses, ensuring that individuals are not taxed on income they never actually received. “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. 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,” Titus wrote.

The bill has gained bipartisan support

Rep. Ro Khanna, a California Democrat, is also co-sponsoring the bill. “The Republican budget would kneecap sports and gambling by making Americans pay taxes on gambling losses. This is deeply unfair. I’m proud to introduce the FAIR BET Act with Rep. Titus to restore the 100% tax deduction for gaming losses,” Khanna said in a statement. The American Gaming Association, which supported Trump’s bill, also praised the FAIR BET Act. The association released a statement, saying, “The American Gaming Association applauds Congresswoman Titus for introducing the FAIR BET Act. We are committed to working with Congresswoman Titus, other congressional leaders, and the Trump Administration to restore the long-standing tax treatment of gaming losses.”

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