Once again lawmakers on both sides of the aisle and in both chambers are attempting to repeal the 0.25% federal betting excise tax on sports betting handle.
Rep. Dina Titus of Nevada has been attempting to repeal the tax for a decade and currently has a bill co-authored with Rep. Guy Reschenthaler in the House. Now there is an accompanying bipartisan bill in the Senate.
Sens. Catherine Cortez Masto and Cindy Hyde-Smith introduced the Withdrawing Arduous Gaming Excise Rates (WAGER) Act, which largely lines up with what the House bill states.
“Nevada is home to multiple championship-level sports teams, and we know better than anyone that responsible, legal sports betting can be a great revenue source for our local economy,” said Cortez Masto. “My bipartisan legislation will ensure our sports gaming industry can provide essential tax relief to consumers and our sports gaming industry, creating more jobs and keeping our tax money in the state while cracking down on illegal activities.”
“Mississippi has a strong tourism industry thanks, in part, to our beautiful casinos and resorts that make valuable contributions to local communities. They could do more if not for this outdated federal excise tax on sports betting that only benefits illegal offshore operations which provide zero jobs or tax revenue,” added Hyde-Smith. “By repealing this tax, our bipartisan WAGER Act will level the playing field, boost local economies, and ensure that gaming revenues stay here, supporting jobs and community investments.”
The American Gaming Association (AGA) applauded the lawmakers for the bill.
“The AGA is grateful to Senators Cortez Masto and Hyde-Smith for their commitment to providing a safe, responsible sports betting market and to continuing to help migrate bettors out of the illegal market, which is bereft of consumer protections and a haven for bad actors and tax evaders. The AGA will continue to work with policymakers to enact legislation to address this harmful tax,” noted AGA CEO and President Bill Miller.
The efforts to repeal the excise tax have never gained much traction. Moreover, there is also a conflicting bill to deal with in both chambers. Sen. Richard Blumenthal and Rep. Andrea Salinas introduced the Gambling Addiction Recovery, Investment and Treatment (GRIT) Act at the start of the year.
That legislation would maintain the federal excise tax but take the sum and apply it to responsible gambling and problem gambling treatment and research.
