2 US reps again file bill to repeal federal sports betting excise tax

United States representatives Dina Titus of Nevada and Guy Reschenthaler of Pennsylvania re-filed legislation on Tuesday (18 February) to repeal the 0.25% federal excise tax on sports betting handle.

It is the fourth consecutive session the co-chairs of the congressional gaming caucus have combined for this bipartisan push. They also did so in 2019, 2021 and 2023. The federal excise tax has been in place since 1951, when it was introduced primarily to counter illegal gambling.

The tax revenue created has dramatically increased since the US Supreme Court struck down the Professional and Amateur Sports Protection Act in 2018. There was nearly $148 billion (£117.72 billion/€142 billion) wagered legally in 2024. That resulted in close to $370 million in tax revenue. That figure will end up slightly higher after Arizona reports its figures for November and December.

There is again competing legislation to utilise the tax revenue to address problem gambling. Connecticut senator Richard Blumenthal and Oregon representative Andrea Salinas re-filed the Gambling Addiction Recovery, Investment, and Treatment (GRIT) Act on 7 February. That bill would direct some of the excise-tax funds to Health and Human Services programmes. That bill is endorsed by the National Council on Problem Gaming (NCPG).

Titus: Excise tax a double penalty

Titus’ long-standing opposition is two-fold, as the federal excise tax also carries a $50 per head tax on sportsbook employees.

Nevada’s retail sportsbooks accepted $2.7 billion worth of bets in 2024 that resulted in $66.8 million in federal excise taxes. The $7.9 billion wagered overall in the Silver State last year was down 4.4% from 2023.

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