Momentum is building in Congress to reverse the controversial gambling tax change included in the One Big Beautiful Bill Act, as the push gains a powerful new ally from across the aisle.
Rep. Dina Titus (D-NV) announced that Rep. Tom Cole (R-OK) has officially signed on as a co-sponsor of her FAIR BET Act, legislation aimed at restoring gambling tax rules to their pre-2026 framework. If passed, the bill would once again allow gamblers to deduct 100% of their losses, eliminating what critics have dubbed “phantom income” taxation.
Cole’s support is especially significant. As Chairman of the House Ways and Means Committee, he oversees Congress’s primary tax-writing body—giving the bill a far stronger chance of advancing.
“This is exciting news for the FAIR BET Act and the gaming community,” Titus wrote on X. “This bill would rightfully restore the tax code for gamers. Nobody should have to pay taxes on phantom income. Let’s get this done.”
Why the Tax Change Sparked Backlash
The renewed push follows months of criticism from poker players, casino operators, and lawmakers after the One Big Beautiful Bill Act limited gambling loss deductions to 90%. Under the new rule, gamblers can owe taxes even in years when they lose money overall—a scenario many argue defies both logic and fairness.
The provision officially took effect on January 1, despite mounting concerns from the gaming industry.
Poker Hall of Famer Erik Seidel, a 10-time WSOP bracelet winner, has been one of the most vocal critics. In December, he revealed that the rule change could push him into semi-retirement. Titus later spoke with Seidel directly about the broader implications.
“I think it affects every state in the country,” Seidel said. “There are casinos in most states, but there are also professional gamblers and recreational players everywhere. This is going to have a really big negative impact.”
He added, “Whoever heard of paying taxes on money you haven’t earned? It seems totally un-American, and I don’t think there’s any precedent for it.”
Economic Fallout Raises Stakes
Industry concerns go beyond individual players. One recent study estimated that the revised deduction rule could slash annual sports betting handle by as much as $18 billion, a massive hit that would ripple through casinos, sportsbooks, state tax revenues, and local economies.
Despite growing bipartisan agreement that the rule is flawed, previous attempts to repeal it have stalled. In December, casino executives met with House Ways and Means leaders—including Rep. Jason Smith (R-MO)—to outline the expected damage, but no immediate action followed.
A Turning Point?
With Tom Cole now backing the FAIR BET Act, supporters believe the bill finally has a credible path forward. His position at the helm of Ways and Means gives the effort both visibility and procedural leverage—two ingredients that have been missing until now.
For gamblers, poker pros, and the broader gaming industry, the question is no longer whether the tax change is harmful, but whether Congress will move quickly enough to undo it before the damage becomes permanent.
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