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According to Congressman Guy Reschenthaler, the excise tax on sports betting is out of date and puts “burdensome requirements” on the gambling industry.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

Barstool Sportsbook Coming to Pennsylvania Soon

Penn National Gaming, one of the most popular casino and entertainment operators in Pennsylvania is preparing to bring the first East Coast Barstool Sportsbook and bar. The operator plans to have this at its Hollywood Casino York, a mini-casino development that it will be launching later this year. Needless to say, this will be a […]

Pennsylvania Lottery Wins Commercial Gambling Lawsuit

While Pennsylvania is certainly one of the most vibrant gambling markets in the United States, there has not been a shortage of issues plaguing various aspects of these operations. Most of them have been relatively easy to handle but some have dragged out for quite some time. One of the most notable ones is a […]

Pennsylvania Casinos to Return to Full Capacity on Memorial Day

The past year or so has been incredibly tough for the retail gambling sector in Pennsylvania and the United States as a whole. However, after several months of speculation about when things could get back to normal, the country is finally ready to take things to the next step. One by one states have been […]

Penn National Fast Tracks Plans for Hollywood Casino York’s Launch

Penn National Gaming’s Hollywood Casino York has been one of the most anticipated developments in the Keystone State. Initially set to open its doors sometime in 2020, the operation was suffered a major setback just like many other businesses across the state due to the coronavirus pandemic. Thankfully, as things begin to change for the […]

More Signs of Recovery as Pennsylvania Gambling Revenue Surges in March

February 2021 was a pretty solid month for the Keystone State’s gambling sector. Despite all of the difficulties most of which arose from the COVID-19 pandemic, many of the gambling entities performed quite well. This was one of the signs that the state was beginning to see some resurgence not just in the gambling sector […]

Similar Stories in Gambling

Barstool Sportsbook Coming to Pennsylvania Soon

Penn National Gaming, one of the most popular casino and entertainment operators in Pennsylvania is preparing to bring the first East Coast Barstool Sportsbook and bar. The operator plans to have this at its Hollywood Casino York, a mini-casino development that it will be launching later this year. Needless to say, this will be a […]

Pennsylvania Records Lower Overall Gaming Revenue in November

Last week, the Pennsylvania Gaming Control Board (PGCB) released the revenue figures for the state’s gaming sector in November. 2020 has been a challenging year and thus it came as no surprise when the report revealed a year-over-year decline in gaming revenue. According to the gaming control board, in November the state’s gambling industry generated […]

Penn Nation Gaming to Acquire Hollywood Casino Perryville

Renowned gaming and entertainment operator Penn National Gaming has recently made a huge announcement that resonates with its very ambitious expansion plans in the United States. The huge announcement pertains to a deal that the company has struck with Gaming and Leisure Properties to acquire the operations of the Hollywood Casino Perryville in Maryland. This […]

Blackhawk Network Launches Gift Cards for Sports Betting

Global branded payment provider Blackhawk Network Incorporated has made history with its launch of a new kind of gift card. Game On ™, the new gift card, is for use in the sports betting market. In addition to an extra layer of security and convenience, the card promises a smart and easy way for sports […]