Bipartisan Support Grows for Repeal of Federal Betting Excise Tax
Thanks to a bipartisan agreement, U.S. lawmakers are coming together to support the initiative to remove the 0.25% federal betting excise tax on handle in participating American jurisdictions.
Bipartisan Legislative Push
Senate Bill, introduced by Senators Catherine Cortez Masto and Cindy Hyde-Smith, seeks to eliminate the excise tax through the Withdrawing Arduous Gaming Excise Rates (WAGER) Act.
Senator Cortez Masto highlighted the benefits of responsible, legal sports betting for local economies, especially in Nevada, which hosts several championship-level sports teams.
Senator Hyde-Smith on the other hand emphasized the impact on Mississippi’s tourism industry, which benefits from the state’s casinos and resorts.
AGA’s Feedback
The American Gaming Association (AGA) is excited about the recent legislative push and sees it as a great step forward. The AGA fully supports the introduction of a Senate Bill aimed at getting rid of federal betting excise tax. If successful, this change would lift a burden off gambling service providers, including top sports betting sites, and allow them to invest more in communities and improve customer service.
AGA CEO and President Bill Miller praised Senators Cortez Masto and Hyde-Smith for their commitment to fostering a safe and responsible sports betting market. “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,” said Miller.
Background
Established in 1951, the 0.25% excise tax was originally intended to curb illegal gambling activities by non-licensed bookies.
Additionally, the law imposes a $50 per person head tax on employees working at legal gambling establishments, which has been a financial strain on legitimate businesses.
In 2022, the excise tax cost Nevada gambling providers an estimated $22 million, funds that could have been better used to support community investments and improve betting odds and promotions.
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