Clicky

Bill to Abolish Excise Tax on Legal Sports Betting Introduced in US Congress - PennsylvaniaCasinos.com News : PennsylvaniaCasinos.com News
tax-cut
Published on
Update on

The United States’ sports betting industry is still taking shape even though it has been a little over three years since PASPA was abolished. While states are now able to decide for themselves whether they would like to launch sports betting industries or not, the federal government still has some ties with the sports betting industry as a whole. One such instance of this relates to the 0.25 percent excise tax that the country’s government collects on all legal sports bets wagered within its borders. This might not be the case for too long though.

Reps. Dina Titus (D-Nevada) and Guy Reschenthaler (R-Pennsylvania), have recently co-sponsored a bill that seeks to put an end to the excise sports betting tax that the government collects. The two representatives currently co-chair the Congressional Gaming Caucus which relaunched earlier this year to deal with some issues relating to the gambling industry.

Concerns About the Current State of the Gambling Industry

Lots of issues have always plagued the gambling industry but it is safe to say that a lot is being done to ensure that everything works out for the better. In the case of the excise tax that the government collects one of the most notable issues is the fact that it is seen as more of a penalty. In fact, the sports betting operators who pay the excise duty are also subject to an additional $50 tax for each of the employees working in their sportsbooks.

Rep. Dina Titus pointed out that the tax remains a thorny issue especially because it makes it very hard for legal sports betting operators to compete against illegal gambling operators. This not only means that more gamers move towards unregulated sites but also that the states and federal government miss out on tax revenue.

“Repealing it will push more consumers out of the black market and into a well-regulated market. Forcing sportsbooks to pay a per-employee tax is the last thing we need when gaming establishments are still making announcements about new rounds of layoffs and furloughs.”

Reps. Dina Titus (D-Nevada).

According to Congressman Guy Reschenthaler, the excise tax on sports betting is out of date and puts “burdensome requirements” on the gambling industry.

As expected, the new bill has received support from a number of stakeholders in the gambling industry. The American Gaming Association (AGA) is one of these entities and it has publicly shown that it is very impressed with the new rule. Bill Miller, the associations chief executive believes that the elimination of the excise due is long overdue and has been a major obstruction for the establishment of a robust legal and regulated sports betting environment.

Latest Headlines

Online Gambling and Credit Card Debt Amid Pennsylvania’s Growth Streak

Pennsylvania State Senator Wayne Fontana (D-Allegheny) is advocating for stricter regulations on online gambling payment options, citing concerns about rising credit card debt among players. Now that online gaming and sports betting have joined Pennsylvania’s traditional brick-and-mortar casinos as part of the state’s gaming expansion, Fontana is spearheading a legislative effort to revise the regulations […]

Supremeland Makes US Market Debut with Pennsylvania License

The Pennsylvania Gaming Control Board (PGCB) has granted an interim license to Supremeland, a prominent gaming provider, allowing it to join the US market for the first time. This interim license is a common step in obtaining a license in the lucrative Keystone State gaming market. Supremeland joins the ranks of other successful applicants who […]

Pennsylvania Shatters Records with $5.7 Billion in 2023 Gambling Revenue

The Pennsylvania Gaming Control Board announced a record-breaking $5.7 billion in revenue for the state of Pennsylvania in 2023, marking an important milestone for the gaming sector in the Keystone State. The astounding figure represents a substantial increase of 9.3 percent from the prior year and is complemented by a record-breaking tax income of 2.34 […]

Pennsylvania’s Unexpected November Revenue Trends

Data from the Pennsylvania Gaming Control Board shows that in December 2023, the state’s gaming income took a surprising nosedive, mostly due to decreased sports betting operations. Despite a general upward trend in gaming income over the preceding several months and even years, the sector suffered its first year-over-year loss since February 2021 in November, […]

PA Sports Betting Posts Record-Breaking Performance in October

October saw a staggering increase in Pennsylvania’s sports betting handle, reaching an amazing $829.0 million. This mind-boggling sum was a notable 4.0% rise from the prior peak of $797.1 million, boosting the industry to an all-time high. A substantial 18.8% year-on-year gain in sports betting income, reaching $48.2 million, was propelled by the recent spike […]

Similar Stories in Gambling

Pennsylvania Shatters Records with $5.7 Billion in 2023 Gambling Revenue

The Pennsylvania Gaming Control Board announced a record-breaking $5.7 billion in revenue for the state of Pennsylvania in 2023, marking an important milestone for the gaming sector in the Keystone State. The astounding figure represents a substantial increase of 9.3 percent from the prior year and is complemented by a record-breaking tax income of 2.34 […]

Pennsylvania’s Unexpected November Revenue Trends

Data from the Pennsylvania Gaming Control Board shows that in December 2023, the state’s gaming income took a surprising nosedive, mostly due to decreased sports betting operations. Despite a general upward trend in gaming income over the preceding several months and even years, the sector suffered its first year-over-year loss since February 2021 in November, […]

PA Sports Betting Posts Record-Breaking Performance in October

October saw a staggering increase in Pennsylvania’s sports betting handle, reaching an amazing $829.0 million. This mind-boggling sum was a notable 4.0% rise from the prior peak of $797.1 million, boosting the industry to an all-time high. A substantial 18.8% year-on-year gain in sports betting income, reaching $48.2 million, was propelled by the recent spike […]

Pennsylvania Gaming Industry Reaches New Revenue Milestone

During the fiscal year 2022-2023, the gaming sector in Pennsylvania was on a phenomenal growth trajectory, setting multiple new revenue records. These milestones are reflective of the growing gambling market in the state. The PGCB reported record-breaking gaming revenue of $5.51 billion for the fiscal year. This figure represents a considerable rise of 10.0% above […]