Legislators introduce bill to end sports betting “handle tax”
Congressional Gaming Caucus suggest 0.25% tax empowers illegal operators by allowing for better odds
Members of the bipartisan Congressional Gaming Caucus (CGC) have introduced legislation aiming to repeal a 0.25% federal excise tax placed on all legal sports bets.
The tax, known colloquially as the ‘handle tax’, was included as part of the Internal Revenue Code (1986), with businesses also mandated to pay a $50-per-head annual tax for each employee working in a sportsbook.
CGC co-chairs Representative Dina Titus and Representative Guy Reschenthaler, who both tabled HB 1661 in the US Congress, have claimed that the tax, and its other elements, discourage employment in the sector while also empowering illegal operators that can offer better odds.
“With the explosive growth of sports betting across the country, it’s time to finally repeal the handle tax which penalizes legal gaming operators and punishes sportsbooks for creating jobs,” said Titus.
“As co-chair of the bipartisan Gaming Caucus, I’m pushing this legislation to keep legal gaming markets thriving nationwide and help local economies reap the benefits of this growing industry,” she added.
A long-standing committee working to advocate for the casino and gaming industry, the CGC now includes 33 members of the US Congress.
The tabling comes amid the NCAA March Madness basketball tournament, one of the biggest events in the US sports betting calendar, with this year’s event expected to see as many as 68 million Americans place bets, according to data from the American Gaming Association.
Titus’s colleague, Representative Reschenthaler drew on the 33,171 jobs the gaming industry provides in his home state of Pennsylvania, issuing a rallying cry in support of the bill.
“Unfortunately, outdated tax codes and burdensome regulations penalize legal operators and incentivize illegal activity,” Reschenthaler said.
“The Discriminatory Gaming Tax Repeal Act will ensure the gaming industry can support good-paying jobs and promote economic growth in southwestern Pennsylvania and across the nation.
“I’m proud to join Gaming Caucus co-chair Titus in introducing this bipartisan legislation, and I urge our colleagues in the House to support it,” he added.
HB 1661 has already been passed to the House Committee on Ways and Means for further consideration over the coming weeks.