Lawmaker Dina Titus Proposes Abolishing Government Tax on Sports Gambling
Let's Talk Sports Betting Taxes
Once more, Rep. Dina Titus (D-Nev.) and Rep. Guy Reschenthaler (R-Pa.) have teamed up to scrap the federal excise tax on sports betting. They've reintroduced the Discriminatory Gaming Tax Repeal Act in the House, aiming to eradicate the pesky 0.25% tax, colloquially known as the "handle tax," levied on all legal sports wagers. Plus, it's got its sights set on eliminating the $50 annual fee imposed on sportsbook staff.
Titus vocalized her frustration over this legacy regulation that unfairly crimps the wallets of legal sportsbooks, asserting that doing away with this tax would boost the competitive edge of licensed betting operators, dimming the allure of illicit gambling options.
Taxed to the Limit
In 1951, when illegal gambling ran rampant, the federal excise tax was born to tame it. Fast-forward to today, and sports betting is no longer a clandestine activity—thanks to the Supreme Court's 2018 decision to axe the Professional and Amateur Sports Protection Act (PASPA). As of now, 38 states and Washington D.C. have legalized sports betting, adding fuel to Titus' argument that the tax is now redundant.
"Illegal sportsbooks don't fork over the 0.25% sports handle tax and the $50 per employee tax," Titus snarled. Furthermore, she bemoaned the shroud of secrecy surrounding the tax's financial impact, stating, "When I quizzed the IRS about where the revenue from the handle tax ends up in the federal budget, they didn't even bat an eyelash."
Previous attempts to pass this bill, in 2019, 2021, and 2023, have fallen flat, unable to survive House committees. However, the bill still garners endorsements from figures within the legal sports betting sector.
Supporters of the bill argue that scrapping the tax will propel industry growth and maintain a fair fight for regulated operators in the market. Eliminating the tax burden would enable sportsbooks to plow their resources back into enhancing customer experiences, beefing up security measures, and supporting responsible gambling initiatives.
While the bill waits for committee assignment, optimists keep their fingers crossed that steadily growing bipartisan support will bear fruit in the current legislative session.
Katsubet5BTC or 111% + 111 Free Spins! Sign Up NowProponents backing the bill assert that lifting this tax will spark industry growth and secure a level playing field for licensed betting operators, ensuring they stay ahead of the competition. Without the handicap of the excise tax, sportsbooks can focus on improving customer satisfaction, bolstering security, and boosting responsible gambling initiatives. The future? Shrouded in uncertainty... but exciting, isn't it? 🎲💰🎉🕺💃
- The Discriminatory Gaming Tax Repeal Act, introduced by Reps. Dina Titus and Guy Reschenthaler, aims to override the 0.25% federal excise tax on sports betting, commonly known as the "handle tax."
- Titus argues that this tax, which is also accompanied by a $50 annual fee on sportsbook staff, unfairly disadvantages legal sportsbooks, creating an allure for illegal gambling options.
- With 38 states and Washington D.C. currently legalizing sports betting, Titus contends that the tax is now redundant and has questioned the IRS about its financial impact on the federal budget.
- Previous attempts to pass this bill have failed to progress, but its supporters within the legal sports betting sector argue that its passage would propel industry growth, enhance customer experiences, and boost responsible gambling initiatives.
- The hope remains that growing bipartisan support will lead to the bill's assignment to a committee and eventual passage in the current legislative session.
