It’s not the primary time ending the federal excise tax on sports activities betting has been instructed, however two co-sponsors of a brand new invoice definitely hope it’s the final.
US Reps. Dina Titus (D-NV) and Man Reschenthaler (R-PA) once more launched a invoice this week that might finish the 0.25% tax positioned on all authorized sports activities betting deal with.
The 2 are the co-chairs of the Congressional Gaming Caucus, and beforehand filed this invoice collectively in 2020 and 2021. Titus additionally sponsored comparable laws in 2014 and 2015, in line with her activity record.
How a lot has sports activities betting tax collected?
Authorized US sports activities betting operators have paid the feds greater than $500 million because the finish of PASPA in March 2018, with deal with just lately eclipsing the $200 billion mark.
That doesn’t embrace the $50 per sportsbook worker that every operator should pay yearly.
Almost $235 million of that tax was paid in 2022 alone, as deal with hit $93.8 billion final 12 months. That was a major soar over 2021 with the addition of extra states together with New York, and may develop extra in 2023 with the additions of Massachusetts and Ohio.
The place sports activities betting tax cash goes
Surprisingly, that tax cash doesn’t go wherever specifically. Titus advised the Las Vegas Evaluation-Journal in 2014 that the IRS did not know where the cash went when she requested.
Now, with considerably extra deal with tax being paid every year throughout the nation than when she first launched the invoice in 2014, Titus is once more in search of to finish a tax whose origins predate PASPA.
“With the explosive progress of sports activities betting throughout the nation, it’s time to lastly repeal the deal with tax which penalizes authorized gaming operators and punishes sportsbooks for creating jobs,” Titus mentioned. “As Co-Chair of the bipartisan Gaming Caucus, I’m pushing this laws to maintain authorized gaming markets thriving nationwide and assist native economies reap the advantages of this rising trade.”
Funds might be used to spice up authorized sportsbooks
Reschenthaler hopes to see these excise tax funds used to raised compete with offshore operators:
“Sadly, outdated tax codes and burdensome rules penalize authorized operators and incentivize criminality,” he mentioned. “The Discriminatory Gaming Tax Repeal Act will make sure the gaming trade can assist good-paying jobs and promote financial progress in southwestern Pennsylvania and throughout the nation.”