Federal Excise on Legal Sports Betting to be Abolished with New Joint Bill

July 29, 2020

Two chairmen of the Congressional Gaming Caucus, Reps. Dina Titus from Nevada and Guy Reschenthaler from Pennsylvania sponsored a bill last Friday 24th of July which sees the abolition of a .25% excise tax on the handling of legal sports bets. The tax is of an additional $50 often payable by the organisations for every one of their employees working in sportsbook.

30 bipartisan Congress members raised some of their concerns in the betting industry, including the fact that penalties on legal sports betting make it difficult for them to compete in an unregulated market.

The new bill has been welcomed by the American Gaming Association with CEO Bill Miller stating that by finally removing these taxes the sports betting industry will offer more protection and bring in even more revenue for the local states and their economies. Congressman Reschenthaler reiterated that gaming was a key ‘economic driver’ in Pennsylvania providing around 33,000 positions in the sports betting industry. He went on to add that the bill would get rid of “an outdated tax and burdensome requirements on the gaming industry.”