A proposal to eliminate the national levy on sports wagering has been revived, providing a fresh wave of optimism for the sector.
Representatives Dina Titus and Guy Reschenthaler have reintroduced legislation aiming to abolish the federal tax on legalized sports betting.
The legislation, dubbed the “Discriminatory Gaming Tax Repeal Act,” seeks to eradicate the 0.25% tax imposed on all authorized sports betting operations.
Titus and Reschenthaler, who spearhead the bipartisan Congressional Gaming Caucus, assert that the tax is superfluous and merely encourages illicit betting practices.
Beyond the tax, businesses are also obligated to pay an annual fee of $50 per employee for sports betting. The two representatives contend that these measures hinder job creation and exacerbate illegal wagering.
“As sports betting gains widespread acceptance nationwide, it’s imperative to abolish the tax, which penalizes legitimate gaming enterprises and impedes job growth,” stated Titus.
“I am advocating for this bill to facilitate the expansion of the legal sports betting market across the nation and enable local economies to reap the rewards of this burgeoning industry.”
In Titus’ home state of Nevada, the tax resulted in a loss of nearly $22 million for the state in 2022. This figure surpasses the national average by more than fourfold.
The federal government’s utilization of these levies is ambiguous, as per the Internal Revenue Service.
Reschenthaler highlighted the gambling sector’s contribution to the national economy.
“The gaming industry generates over a million positions in the United States, encompassing 33,171 in Pennsylvania, and contributes over $70 billion in income to state and local authorities nationwide,” he remarked. “However, outmoded tax legislation and cumbersome regulations disadvantage legitimate operators and encourage illicit activity. The Discriminatory Gaming Tax Repeal Act will guarantee that the gaming industry can sustain high-paying jobs and propel economic expansion in southwest Pennsylvania and across the nation.
“I am pleased to present this bipartisan bill with co-chair Titus and urge our colleagues in the House to endorse it.”
Given this year’s March Madness competition, the co-chair reported that 68 million American adults intend to bet $15.5 billion on the NCAA Men’s Division I Basketball Tournament.
But this isn’t the initial attempt by the committee to abolish the excise tax, and it’s evident that operators and legislators alike are seeking to terminate the requirement given the swift growth of sports betting in the United States.
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