Fair Accounting for Income Realized from Betting Earnings Taxation Act
AI Summary
The FAIR Bet Act aims to modify the federal tax code regarding how gambling losses are deducted. The bill proposes to increase the limit on deductible wagering losses from 90 percent to 100 percent of gambling winnings. This change is intended to ensure that taxpayers are only taxed on their actual net income from betting activities.
Impact & Passage
Composite Passage Score
Medium confidenceBased on 3 of 5 available signals
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LLM-only estimate
As a standalone tax amendment introduced by two Democratic members, the bill faces significant hurdles in a likely divided or Republican-controlled chamber. Tax code changes typically require broad bipartisan support or inclusion in a larger omnibus tax package to succeed. While it has a clear interest group (the gaming industry and professional bettors), the lack of Republican co-sponsors at introduction and the potential for reduced tax revenue make passage unlikely in the near term.
Provisions
Designates the official name of the bill as the 'Fair Accounting for Income Realized from Betting Earnings Taxation Act' or 'FAIR Bet Act'.
Amends Section 165(d) of the tax code to allow individuals to deduct 100 percent of their gambling losses against their gambling gains, increasing it from the current 90 percent threshold mentioned in the bill text.
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Version History
Actions
Motion to Discharge Committee filed by Ms. Titus. Petition No: 119-16.
Introduced in House
Referred to the House Committee on Ways and Means.