The Discriminatory Gaming Tax Repeal Act aims to eliminate the 0.25% excise tax on legal sports bets, known as the “handle tax”. Representatives Titus and Reschenthaler, co-chairs of the bipartisan Congressional gaming caucus, argue that this tax is unnecessary and promotes illegal operations. In addition to the excise tax, companies are required to pay a yearly $50-a-head tax per employee working in sportsbooks. The representatives believe that these two measures discourage employment and enable illegal activities.
“With the rapid growth of sports betting nationwide, it is time to repeal the handle tax, which penalizes legal gaming operators and hinders job creation in sportsbooks,” said Titus. “As co-chair of the bipartisan gaming caucus, I am advocating for this legislation to support the thriving legal gaming markets across the country and allow local economies to benefit from this expanding industry.”
In Nevada, Titus’ home state, the excise taxes have resulted in a loss of nearly $22 million in 2022, which is more than four times the national average. The IRS has been unable to track how the federal government has utilized this tax revenue.
Reschenthaler highlighted the positive impact of the gaming industry on the federal economy. “The US gaming industry provides over one million jobs, including 33,171 jobs in Pennsylvania, and contributes over $70 billion to state and local governments nationwide,” he noted. “However, outdated tax codes and burdensome regulations penalize legal operators and incentivize illegal activities. The Discriminatory Gaming Tax Repeal Act will ensure that the gaming industry can support well-paying jobs and promote economic growth in southwestern Pennsylvania and across the nation. I am proud to join co-chair Titus in introducing this bipartisan legislation and urge our colleagues in the House to support it.”
Considering the upcoming March Madness tournament, the co-chairs reveal that 68 million American adults plan to wager $15.5 billion on the NCAA Men’s Division I basketball tournament. This is not the first attempt by the committee to eliminate the excise tax, but with the rapid expansion of sports betting in the US, it is evident why operators and legislators are pushing for an end to this requirement.
