Rep. Titus Finds Co-Sponsor Across Aisle for Gambling Tax Repeal

U.S. Rep. Dina Titus’ mission to get a highly unpopular gambling tax change repealed may finally be gaining some traction.

On Thursday, Titus announced on X that U.S. Rep. Tom Cole of Oklahoma, chairman of the House Appropriations Committee, is co-sponsoring her FAIR BET Act (Fair Accounting for Income Realized from Betting Earnings Taxation).

“Nobody should have to pay taxes on phantom income,” Titus wrote. “Let’s get this done.”

Under the new law, which takes effect for the 2026 tax year (2027 filing), gamblers could owe taxes on money they never made, since it caps deductions at 90% of winnings.

Bipartisan Support the Push Titus’ FAIR BET Needs?

Cole’s support is significant because he’s a Republican, and Titus is a Democrat. That means Titus’ bill has bipartisan support, which it will need if it has any hope of becoming law.

Gambling tax professional Russ Fox told PokerScout last year that GOP support would be necessary to ensure the bill’s passage. He said attaching it to must-pass legislation would be the clearest way forward.

Like Titus, Cole has a vested interest in seeing the gambling industry flourish. A member of the Chickasaw Nation, Cole has worked to protect tribal gaming interests. Oklahoma has a robust selection of tribal casino properties.

Many have speculated that the new tax law could limit customers’ willingness to spend on gambling. High-dollar clientele would be hurt the most, as “whales” could rack up a ton of taxable winnings while still taking a loss for the year.

For example, a break-even gambler might win and then lose $100,000 in a year, but thanks to the new 90% cap, $10,000 of that would be taxable. In many states, that would mean they owe several thousand dollars in taxes, despite winning $0.

Titus hails from Nevada. The economy there obviously depends heavily on the success of the gambling industry.

Market Indicators Still Relatively Bearish on Gambling Tax Repeal

Casino industry stakeholders have been aiming for a repeal this year, so that the tax change never actually takes effect.

While Titus’ announcement is notable, market indicators remain relatively bearish on the chances of passage this year.

A Kalshi market speculating on the repeal in 2026 pegs the chances at 44%. At Polymarket, the chances are even lower at 36%. The Polymarket number spiked as high as 57% on Jan. 7 before dropping again.

Chances of a repeal by April are 19% at Kalshi and 24% at Polymarket.

Titus and Cole have work to do, but the first steps toward a repeal have been taken, and gamblers will follow the bill’s progress with hope this year.