HR4304-119

In Committee

Fair Accounting for Income Realized from Betting Earnings Taxation Act

119th Congress Introduced Jul 7, 2025

Summary

What This Bill Does

The FAIR Bet Act amends Internal Revenue Code section 165(d), as recently amended, by replacing 90 percent with 100 percent. In practical terms, gamblers would again be able to deduct wagering losses up to the full amount of wagering gains rather than being limited to 90 percent of losses. The bill is a narrow tax accounting correction aimed at avoiding tax on phantom income for taxpayers who break even or lose money overall from wagering.

Who Benefits and How

Recreational gamblers benefit because wagering losses can offset wagering gains up to 100 percent. Professional gamblers benefit from restoration of full loss accounting against betting earnings. Sports bettors benefit if tax liability better matches net wagering results rather than gross wins. Tax preparers serving gamblers benefit from a simpler 100 percent loss limit.

Who Bears the Burden and How

The Internal Revenue Service must administer the restored 100 percent wagering-loss rule. Federal revenue officials may collect less tax from taxpayers with offsetting wagering losses. Taxpayers claiming wagering losses must still document losses up to the amount of gains. Budget scorekeepers must account for the revenue effect of replacing the 90 percent limit.

Key Provisions

  • Amends Internal Revenue Code section 165(d).
  • Provides a 100 percent wagering-loss limitation in place of the prior 90 percent rule.
  • Protects full deduction of wagering losses against wagering gains.
  • Limits tax exposure on break-even or net-loss betting activity.

Evidence Chain:

This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers.

At a Glance

What This Bill Does

Restores full deductibility of wagering losses against wagering gains by replacing the Internal Revenue Code's 90 percent loss limit with 100 percent.

Key Policy Areas

Tax, Gambling, Consumer Finance

Primary Purpose

Restores full deductibility of wagering losses against wagering gains by replacing the Internal Revenue Code's 90 percent loss limit with 100 percent.

Policy Domains

Tax Gambling Consumer Finance

Resolution provisions

Identified Gains
Contextual inference, no direct clause citation
  • Recreational gamblers
  • Professional gamblers
  • Sports bettors
  • Tax preparers serving gamblers
Model: codex-gpt-5 | Version: bill_summary_v2 | Source: ih

Contextual inference, no direct clause citation

Identified Costs
Contextual inference, no direct clause citation
  • Internal Revenue Service
  • Federal revenue officials
  • Taxpayers claiming wagering losses
  • Budget scorekeepers
Model: codex-gpt-5 | Version: bill_summary_v2 | Source: ih

Contextual inference, no direct clause citation

Legislative Progress

In Committee
Introduced Committee Passed
Feb 12, 2026

Motion to Discharge Committee filed by Ms. Titus. Petition No: …

Jul 7, 2025

Ms. Titus (for herself and Mr. Khanna) introduced the following …

Jul 7, 2025

Referred to the House Committee on Ways and Means.

Jul 7, 2025

Introduced in House

Impact analysis is available but no clear stakeholder effects identified. View clause-level analysis →

Bill Structure & Actor Mappings

Who is "The Secretary" in each section?

Domains
Tax Gambling Consumer Finance

We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.

Learn more about our methodology