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Rep. Dina Titus (D-Nev.) has once again introduced legislation to repeal the federal excise tax on sports betting. Working alongside Rep. Guy Reschenthaler (R-Pa.), Titus has refiled the Discriminatory Gaming Tax Repeal Act in the House of Representatives. The bill aims to remove the 0.25% excise tax, also known as the “handle tax,” imposed on all legal sports wagers. Additionally, it seeks to eliminate the $50 annual fee levied on sportsbook employees.
Titus criticized the tax as an outdated regulation that unfairly penalizes legal sportsbooks. She believes removing this tax would enhance the competitive edge of regulated betting operators, reducing the appeal of illegal gambling options.
The federal excise tax was introduced in 1951 to combat illegal gambling. However, following the Supreme Court’s 2018 decision to overturn the Professional and Amateur Sports Protection Act (PASPA), sports betting became legal in many states. Today, 38 states and Washington D.C. have regulated sports betting markets, making the tax largely unnecessary, according to Titus.
“Illegal sportsbooks do not pay the 0.25 percent sports handle tax and the accompanying $50 per head tax on sportsbook employees, giving them an unfair advantage,” Titus stated. She also highlighted a surprising lack of transparency regarding the tax’s impact, adding, “I once asked the IRS where the revenue from the handle tax went in the federal budget and they didn’t even know.”
This marks the fourth time Titus and Reschenthaler have proposed the bill, with prior efforts in 2019, 2021, and 2023 failing to move past the House committees. Despite its challenges, the initiative has received support from stakeholders within the legal sports betting industry.
Advocates argue that eliminating the tax would foster industry growth and ensure regulated operators remain competitive. Without the burden of the excise tax, sportsbooks could reinvest in better customer experiences, security measures, and responsible gaming initiatives.
While the bill awaits committee assignment, supporters remain hopeful that growing bipartisan backing will lead to success in the current legislative session.