Two US lawmakers are calling for the repeal of the federal sports betting excise act. Earlier this week Representatives Dina Titus (D-Nevada) and Guy Reschenthaler (R-Pennsylvania) introduced a bill that would repeal the 0.25 percent the Federal Government has been collecting on sports betting handles for almost 75 years.
The sports betting excise tax has been in place since 1951, well before regulated sports betting was part of the US gaming landscape. It was initially enacted to draw revenue, and add additional charges, from and to illegal sportsbooks. It’s a tax that’s very much in line with the taxing of criminal
Two US lawmakers are calling for the repeal of the federal sports betting excise act. Earlier this week Representatives Dina Titus (D-Nevada) and Guy Reschenthaler (R-Pennsylvania) introduced a bill that would repeal the 0.25 percent the Federal Government has been collecting on sports betting handles for almost 75 years.
The sports betting excise tax has been in place since 1951, well before regulated sports betting was part of the US gaming landscape. It was initially enacted to draw revenue, and add additional charges, from and to illegal sportsbooks. It’s a tax that’s very much in line with the taxing of criminal activities that eventually brought down the legendary gangster Al Capone.
In contemporary times, the tax has been a boon for the Federal Government. In 2024, for example, the US collected $340 million from regulated operators on the $148 billion that was legally wagered on sports betting across the country.
Not coincidentally, Titus and Reschenthaler both hail from states where the regulated gaming industry is big business. They correctly point out that the tax is a double burden on regulated operators, who are already paying taxes on the state level and are still responsible for filing taxes like any other business.
The two lawmakers described the situation in a joint statement that was reported on by Casino Reports saying, “The Discriminatory Gaming Tax Repeal Act of 2025 repeals a tax that does nothing except penalize legal gaming operators for creating thousands of jobs in Nevada and 37 other states around the nation.Illegal sportsbooks do not pay the 0.25% sports handle tax and the accompanying $50 per head tax on sportsbook employees, giving them an unfair advantage.”
While Titus and Reschentaler are enthusiastic about protecting their local gaming interests, the rest of Congress seems less inclined to care. This is the fourth time that they’ve introduced this bill and its chances of moving out of committee are definitely a risky bet. that eventually brought down the legendary gangster Al Capone.
In contemporary times, the tax has been a boon for the Federal Government. In 2024, for example, the US collected $340 million from regulated operators on the $148 billion that was legally wagered on sports betting across the country.
Not coincidentally, Titus and Reschenthaler both hail from states where the regulated gaming industry is big business. They correctly point out that the tax is a double burden on regulated operators, who are already paying taxes on the state level and are still responsible for filing taxes like any other business.
The two lawmakers described the situation in a joint statement that was reported on by Casino Reports saying, “The Discriminatory Gaming Tax Repeal Act of 2025 repeals a tax that does nothing except penalize legal gaming operators for creating thousands of jobs in Nevada and 37 other states around the nation.Illegal sportsbooks do not pay the 0.25% sports handle tax and the accompanying $50 per head tax on sportsbook employees, giving them an unfair advantage.”
While Titus and Reschentaler are enthusiastic about protecting their local gaming interests, the rest of Congress seems less inclined to care. This is the fourth time that they’ve introduced this bill and its chances of moving out of committee are definitely a risky bet.