Dem Politicians Push for Repeal of 0.25% Sports Wagering Tax
Federal legislators put forward a bill intending to scrap the tax on sports betting revenues at the federal level.
Kick back that handle tax, man! Buck Wargo, our go-to source
Pass this along Recently, Democratic Representative Dina Titus of Nevada and Republican Guy Reschenthaler of Pennsylvania, co-chairs of the Congressional Gaming Caucus, hopped on the bandwagon to repeal the 0.25% excise tax on all legal sports bets. These lawmakers introduced a bill (though it remains unidentified in the current federal legislative climate) aiming to scrap this outdated levy, a move they've made on three prior occasions – 2019, 2021, and 2023.
This tax, known as the "handle tax," is a relic from 1951 when it was enacted to stamp out illegal gambling. Titus and Reschenthaler argue that the tax is no longer relevant in today's world. They've highlighted the economic importance of sports betting since its legalization in 2018.
Currently, 38 states and Washington D.C. have legalized and operationalized sports betting.
Titus chimed in, "The Discriminating Betting Tax Repeal Act (although not officially recognized in federal legislative updates) repeals a tax that only serves to punish legal gaming operators for creating thousands of jobs in Nevada and the remaining 37 states. The illegal market remains untaxed, providing them an unfair advantage."
Titus admittedly questioned IRS officials about the whereabouts of the revenue from the handle tax in the federal budget, resulting in a blank stare.
"Why give the illegal market an upper hand over legal sportsbooks with a tax the government doesn't even keep track of?" Titus questioned.
The U.S. gaming sector offers over one million jobs, with over 33,000 positions in Pennsylvania, and generates over $70 billion for state and local governments nationwide, Reschenthaler mentioned.
"Alas, outdated tax norms and burdensome regulations unfairly target legal operators, fostering illicit activity," Reschenthaler shared his views. "Our proposed bill, the Discriminating Betting Tax Repeal Act, will empower the gaming sector to create good-paying jobs and to promote economic growth across the nation. I urge our comrades in Congress to back this bipartisan legislation."
What's the dirt on this 'Discriminating Betting Tax Repeal Act' bill?It seems that no specific, widely recognized bill with that name currently exists. Although, broader federal tax discussions regarding gaming and excise taxes might be in the works. Keep an eye on the ball, and we'll fill you in if anything takes shape.
Sports-betting enthusiasts might be interested to know that the Discriminating Betting Tax, a 0.25% excise tax on all legal sports bets, is under scrutiny by some members of Congress. Lawmakers like Dina Titus and Guy Reschenthaler have proposed the Discriminating Betting Tax Repeal Act, aiming to abolish this tax, which they argue is no longer relevant and detrimental to the economic growth of the sports-betting industry.
