House Rules Committee blocks FAIR BET Act, leaving 2026 gambling tax reform unce

[KungFuBac]

Hopefully they will fix this(i.e., revert back to previous rules).

Good news for slot players is the $1200 cutoff(for jackpot payouts generating a form) has been raised to $2000 >1/1/26. This change doesn't affect me as I don't play slots (or if I do its only when required for free play).


https://cdcgaming.com/brief/house-rules-committee-blocks-fair-bet-act-leaving-2026-gambling-tax-reform-uncertain/




Continued Success,
Continued Success,

[alrelax]

A few details about what was written and pending, it's not over yet:

A new tax law goes into effect on Thursday that is likely to have massive ramifications for gamblers.

Starting on Jan. 1, 2026, only 90% of gambling losses will be able to be deducted on taxes at the end of each year.

Meanwhile, 100% of winnings will still be taxed as income, meaning that even if you break even while gambling, you could still be on the hook for a significant tax bill.

For example, if you record $100,000 in gambling losses throughout 2026, but also record $100,000 in gambling winnings, you would still owe $10,000 in taxable income, despite earning no net income.

Those with modest annual net income gains could also see their gambling winnings completely erased in taxes if a significant amount of offsetting losing wagers are placed throughout the year.

The change comes as part of the Big Beautiful Bill, which was signed into law in July. All 50 states will be affected, and the changes will apply to all sports bets and casino games that are played, both online and in person.

However, the change will not affect previous wagers placed throughout 2025, with old tax rules still applicable for the last time this spring as tax season gets underway.

Only federal taxes to the IRS will be impacted. State tax rules on gambling winnings and losses will not be affected.

Already, the new tax rule is generating significant backlash among the gambling community, with some warning that wagers placed on sports bets and in casinos are likely to decrease as a result of the change.

A push is underway to repeal the provision of the bill, led by Las Vegas-area Rep. Dina Titus of Nevada. However, the bill, titled the Fair Bet Act, was introduced in July, and has not progressed in the House since.