Congressional Gaming Caucus Chairs Reintroduce Bill to Strike Federal Sports Betting Tax
Congressional Gaming Caucus Chairs, US Reps. Dina Titus (D-Nevada) and Guy Reschenthaler (R-Pennsylvania), make reintroduced lawmaking that seeks to oddment the federal government’s excise tax revenue enhancement levied on most sound sports bets.
Sports betting is legal and operational inwards 33 states and DC. The American Gaming Association (AGA) estimates that a book 68 billion US adults testament property some sorting of bet on this year’s NCAA men’s hoops tourney that tipped off this week.
Nearly all bets wagered lawfully inward i of the sound sports betting jurisdictions are subjected to the federal government’s 0.25% excise tax tax. Titus Vespasianus Augustus and Reschenthaler, who respectively interpret the US’ richest and second-richest gaming states in terms of 2022 144 revenue, believe it’s clip to lift the federal levy en masse on sports bets that is commonly known as the “handle tax.”
With the explosive development of sports betting across the country, it’s time to eventually repeal the grip assess which penalizes legal gaming operators and punishes sportsbooks for creating jobs,” said Titus. “As co-chair of the bipartisan Gaming Caucus, I’m pushing this lawmaking to keep legal gaming markets thriving nationwide and help local economies glean the benefits of this growing industry.”
Sports gambling was modified to Silver State until the US Supreme Margaret Court inward May 2018 overturned the Professional and Amateur Sports Protection Act (PASPA) of 1992. PASPA had prevented all other states from legalizing single-game sports betting.
Mysterious Fed Tax
Titus and Reschenthaler say it’s anyone’s surmise as to where the federal sports betting excise money goes. Titus, who has served in U.S. Congress for to a greater extent than a decade, said the Internal Revenue Service (IRS) can’t pinpoint where specifically the federal sports betting revenue is allocated.
The sports betting excise tax assess applies to all sports betting not conducted flat past a state-run lottery. Pari-mutuel wagers on gymnastic horse races are also exempt. All other legal bets are slapped with the 0.25% tax, with sportsbook operators on the hooking to remunerate the tax responsibility.
While the sports betting excise is so little that the IRS can’t still narrate Titus where the monetary resource go, the money certainly isn’t insignificant to the sportsbooks that pay off it.
The AGA reports that the sound sports betting grip in 2022 was around $93.2 billion. With the 0.25% assess applying to most of those bets, the feds’ skip of the track record handle was presumptively around $233 million.
Legal sportsbooks must also pay off the federal governance an annual $50 per employee duty. Both the hold excise and the employee chief tax, Titus and Reschenthaler conclude, discourage engagement inward the legal sports betting manufacture and authorise illegal, seaward sportsbooks.
Modernization Needed
Few industries get changed and evolved in the US o'er the yesteryear half-decade as often as the sports betting sector.
Titus and Reschenthaler’s legislating is called “The Discriminatory Gaming Tax Repeal Act.” The House resolution, which hasn’t yet been assigned a filing number, seeks to amend the Internal Revenue Code of 1986 to repeal excise tax taxes related to to sports betting.
“Outdated tax codes and onerous regulations penalize legal operators and incentivize illegal activity,” Reschenthaler concluded. “The Discriminatory Gaming Tax Repeal Act will ensure the gaming manufacture tin financial backing good-paying jobs and kick upstairs economical growth.”