One of poker’s most talked-about policy battles of 2025 is far from over. The controversial gambling “phantom tax,” introduced through last year’s One Big Beautiful Bill, remains under intense scrutiny, and its potential impact on professional players—including Poker Hall of Famer Erik Seidel—has kept the issue firmly in the spotlight.
While the Fair Bet Act was widely seen as the industry’s best early chance to undo the change, that effort has now stalled. But optimism has returned in the form of a new bipartisan proposal: the Full House Act, a bill many believe has a stronger path toward becoming law.
Why the Fair Bet Act Lost Momentum
The Fair Bet Act, put forward by Congresswoman Dina Titus (D-NV), was designed as an emergency fix to reverse a new tax rule set to take effect in the 2026 tax year. Buried within the sweeping One Big Beautiful Bill Act, the rule limits gamblers to deducting only 90% of their losses, even if they break even overall.
Despite early support, the bill failed to gain traction. It was rejected by the House Rules Committee in September and faced another setback last week when lawmakers declined to attach it as an amendment to a broader defense bill. Congressional leadership ultimately decided it wasn’t the right legislative vehicle, raising fears that the 90% cap could remain in place.
The Full House Act Steps In
With the Fair Bet Act sidelined, the Full House Act has taken center stage. A previous version of the bill was introduced in July 2025 by Senator Catherine Cortez Masto (D-NV), but that attempt was quickly blocked.
This latest iteration is being brought forward as an amendment to a smaller legislative package currently under consideration by the House Rules Committee. Supporters are encouraged by its bipartisan backing and by the fact that one of its sponsors represents a state without a major gaming industry—often a key hurdle in gambling-related legislation.
The bill is co-sponsored by Rep. Steven Horsford (D-NV) and Rep. Max Miller (R-OH), both members of the powerful House Ways and Means Committee. If passed, the Full House Act would fully restore the long-standing rule allowing gamblers to deduct 100% of their losses, eliminating the so-called phantom tax.
Miller framed the issue in straightforward terms. He said the bill is about fairness, arguing that taxpayers should not owe money on winnings they never truly kept. By reinstating full loss deductions, the legislation would ensure the tax code treats gambling income consistently and honestly.
A Technical Fix with Growing Support
Advocacy groups believe the bill’s best chance lies in being treated as a technical correction rather than a sweeping policy change. According to Fairplaygov, there is hope the Full House Act could be introduced under “closed rules,” limiting debate and preventing unrelated amendments.
Another possibility is its inclusion as a “self-executing rule,” where approval of a procedural vote would automatically enact the amendment without a separate roll-call vote.
Supporters are optimistic that lawmakers will view the Full House Act as a common-sense, bipartisan adjustment with minimal budget impact—exactly the type of fix Congress can quietly push across the finish line.
For now, the gambling industry and professional players alike are watching closely, hopeful that this new approach finally puts an end to the phantom tax before it takes effect.
