Titus Archives

Rep. Dina Titus (D-NV) has been a fervent advocate for the removal of a federal excise tax on sports betting for almost ten years. But the recent legislation unveiled by Democratic colleagues Sen. Richard Blumenthal (D-CT) and Rep. Andrea Salinas (D-OR) has taken an unexpected turn. In addition to keeping the sports betting tax in place, the proposed legislation would also give problem gamblers 50% of the money raised. But according to Titus, the bill is "redundant," as the states that have legalized sports betting in the last five years have already provided funding for programs related to responsible gaming. She may not give up, but the bill under consideration casts doubt on the accepted wisdom of sports betting taxes. Titus's viewpoint is shared by the American Gaming Association (AGA), which is the industry's representative in Washington, D.C. Chris Cylke, senior vice president of the AGA, contends that greater funding for problem gambling treatment through casino gaming taxes has been a logical result of the quick expansion of legal gaming throughout the United States. A Tax Born in the 1950s Faces Criticism The federal handling tax was once intended to keep an eye on illicit gambling operations. It was imposed in the 1950s and is currently assessed at 0.0025 percent for each sports wager. But now that gambling is available outside of Nevada, the levy is viewed as outdated. Cylke and other critics claim that licensed companies are at a competitive disadvantage with respect to overseas bookmakers that evade taxes. Rep. Guy Reschenthaler (R-PA) and Titus, a prominent member of the Congressional Gaming Caucus, previously collaborated on legislation that sought to eliminate the federal handle tax. All of these attempts have not resulted in any legislative movement; the measure is still inert. After a U.S. Supreme Court ruling in 2018 that let states to legalize and regulate the practice, the sports betting landscape in the country underwent a dramatic change. Sports betting is now allowed in 38 states and Washington, D.C., and four more are considering legalization. Its popularity has increased significantly. According to the AGA, Americans wagered over $8.3 billion in the first ten months of 2023, a 50% increase from the same period the year before. Titus highlights the significant contributions made by Nevada sports betting companies, who in 2022 contributed close to $22 million in handling taxes, despite the legislative squabble. Titus claims that the new legislation poses a risk of exacerbating the already-existing tax discrepancies between legitimate gaming organizations and illegal offshore activities.

Titus

Controversial Legislation Faces Opposition from Titus and Gaming Lobbyists