Fair Accounting for Income Realized from Betting Earnings Taxation Act
The FAIR Bet Act is a narrowly focused bill that would amend the Internal Revenue Code to change how wagering losses are treated for tax purposes. Specifically, it would replace the reference to “90 percent” with “100 percent” in Section 165(d), effectively increasing the portion of wagering losses that can be deducted. In practical terms, the bill would make the deduction for gambling losses more favorable to taxpayers, potentially allowing a larger (or full) deduction of losses associated with wagering, subject to how the rest of Section 165(d) interacts with winnings and other rules. The text provided does not specify additional changes, such as carryforwards or timing, beyond this percentage adjustment. The bill was introduced in the House on July 7, 2025, by Rep. Titus (with Rep. Khanna) and referred to the Ways and Means Committee. It is a standalone amendment with no other provisions described in the available text.
Key Points
- 1Amends Section 165(d) of the Internal Revenue Code by changing the deductible percentage from 90 percent to 100 percent for wagering losses.
- 2The act is titled the “Fair Accounting for Income Realized from Betting Earnings Taxation Act” or “FAIR Bet Act.”
- 3Introduced by Rep. Titus and Rep. Khanna; referred to the House Ways and Means Committee; no further actions shown in the provided text.
- 4Scope is limited to the wagering losses provision; other tax rules related to gambling (such as winnings reporting) are not described as changing.
- 5The intended effect is to make the tax treatment of gambling losses more favorable to taxpayers.