New bill in Congress to end federal excise tax on sports betting

Representatives Guy Reschenthaler (R-PA) and Dina Titus (D-NV) recently reintroduced a new bill to congress to end the federal excise tax on sports betting. Under the Discriminatory Gaming Tax Repeal Act, they would end the 0.25 percent excise tax on all legal sports bets. Guy Reschenthaler and Dina Titus argue that the excise tax is unnecessary and has the unintended consequence of creating an illegal market that loses revenue.

The Tax Combines with Others

Some may argue that sportsbooks already face a heavy tax burden with a $50-a-head tax on every employee that works in the sportsbooks. The representatives believe that this tax discourages employment, and it gives greater strength to illegal operations. We have already seen explosive growth of sports betting across the nation. Reschenthaler and Titus believe they need to create greater incentives for legal operators.

Titus said that she is pushing this new legislation because she wants to see legal sports betting thrive, and she wants to cut off the illegal market at the same time. It will help local economies to take full advantage of the benefits. Sports betting is a thriving industry that continues to grow each year.

How Much in Nevada?

To put the excise tax into perspective, in Nevada alone, they have paid over $22 million in excise taxes for sports betting. That's about four times the national average. Reschenthaler has talked about how the sports betting industry has helped to boost the revenue of the country. At the same time, it helps boost the job market. For example, the US gaming industry has over one million jobs. It generates over $70 billion in revenue for federal and state governments.

The Goal is to Stop Penalizing Legal Operators

Reschenthaler and Titus both believe that this is an outdated tax law that is only hurting legal operators and giving more power to illegal operations. With the Discriminatory Gaming Tax Repeal Act, they will ensure that the gaming industry can continue to support good-paying jobs. We want to take action to support our government and the economy.

Not Their First Rodeo

Legislators have already attempted to pass this bill in the past and failed. The rapid expansion of legal sports betting has made it even more important that legislators try to remove the tax to help support the industry and promote job growth in a time where we are struggling economically.

Final Thoughts

The excise tax may be hindering the growth of the industry because it penalizes operators. Sports betting has been legalized in over 33 states, but the excise tax may help to encourage business with illegal operators since they can give people better odds. We shouldn't be punishing companies for creating jobs is the argument for getting rid of the excise tax. Getting rid of this tax will help the industry to grow faster because it will put less burden on operators, and it will encourage people to conduct business with the legal operations.