Poker Tax Fix Gains Momentum After Backlash

Top House Republican Vows to Reverse the 90% Cap

Last week, House Ways and Means Committee Chairman Jason Smith (R-MO) flew into Vegas and spent the evening with three major casino CEOs — reportedly including MGM Resorts’ Bill Hornbuckle. According to Smith, they all had one major complaint: the new cap on gambling loss deductions. And just hours later, during a field hearing the next morning, Smith went on record promising to fix it.

His exact words? He’s committed to restoring the 100% deduction before the end of the year — that is, before the new rule kicks in for 2026 filings.

The amendment as it stands would mean professional players could end up paying taxes even in break-even or losing years. It’s a strange formula: winnings minus 90% of losses = taxable income. You don’t need to be Phil Galfond to see how that math goes sideways for poker pros.

The Pressure Came from Inside the Industry

According to Smith, the push to fix this didn’t come from politicians — it came from operators. He says the casino CEOs “praised” much of the new tax code but flagged the loss deduction cap as a potential killer. Operators in Missouri (Smith’s home state) had already raised red flags, and now the Strip is adding to the pressure.

FAIR BET Act Gains Bipartisan Support

Meanwhile, Rep. Dina Titus (D-NV) isn’t waiting around. She’s introduced the FAIR BET Act — a bill designed specifically to restore the full 100% deduction for gambling losses. It’s already got 10 bipartisan cosponsors and the backing of Nevada delegation members like Steven Horsford.

Titus didn’t mince words:

Even Senate Majority Leader Nicole Cannizzaro (D-Las Vegas) chimed in, warning the new rule could have a “chilling effect” on high-volume and destination gambling, a not-so-subtle hint that Nevada’s entire economy could feel the impact.

So… Is It Getting Fixed?

There’s momentum — but not a guarantee. Smith says he’ll “look at what avenues” are available to fix what the Senate added. That’s politician-speak for “we’re working on it,” but at least poker isn’t being ignored anymore.

With bipartisan support, public blowback, and casino bosses all in agreement, the odds of a reversal look better than they did a few weeks ago. But until something passes, poker players remain stuck in a holding pattern — hoping that logic (and math) eventually win out.