Poker Players Face Tax Crisis: FAIR Bet Act Aims to Save the Day

The FAIR Bet Act, introduced by Representatives Dina Titus (D-NV) and Ro Khanna (D-CA), seeks to restore full gambling loss deductions for professional poker players. This legislation directly challenges a provision in President Trump’s “One Big Beautiful Bill” that limits gamblers to deducting only 90% of their losses starting in 2026.

The bill amends Section 165(d) of the Internal Revenue Code by striking “90 percent” and inserting “100 percent,” essentially undoing the damage before it takes effect. Under current law, poker players can deduct gambling losses up to the amount of their winnings, ensuring they’re taxed only on actual profit, not gross winnings. The new Senate provision flips this on its head, as even break-even players would owe taxes on 10% of their gross winnings — money they never actually earned.

Phil Galfond, one of the first prominent voices to sound the alarm, described the change as “much worse than anything that’s happened in poker” in recent years. The bill faces steep political odds despite garnering bipartisan support from Rep. Troy Nehls (R-TX). The provision is projected to raise $1.1 billion over eight years, making it attractive to lawmakers looking for revenue sources. The American Gaming Association, which represents casinos and gaming operators, has thrown its support behind the FAIR Bet Act. The 90% cap takes effect in 2026, giving lawmakers limited time to act.