USA

US Legislators Take Another Shot at Canceling Sports Betting Excise Tax – Again

February 27, 2025
Priya Patel

The two US lawmakers are back at it, filing once again to repeal the federal sports betting excise tax of 0.25%, which has been around since the ‘50s.

US reps Guy Reschenthaler from Pennsylvania and Dina Titus from Nevada are both taking another swing at removing the 0.25% federal excise tax on sports betting. On February 18, the lawmakers re-filed the bill against betting taxes, arguing it’s outdated nature that’s holding the industry back.

Why again?

For the fourth round in a row, the co-chairs of the congressional group on gambling are back at it. They’re pushing the bill once again to remove the federal sports betting excise tax once and for all. They also took their shots in 2019, 2021, and 2023. Now, they’re doubling down their attempt for 2025.

Good to know, this sports betting tax has been in place since 1951 and was originally designed to combat illegal gambling. Since the increasing popularity of sportsbooks, many argue this tax is way too outdated. That’s why the two US reps are betting big on getting rid of it.

Ever since the Professional and Amateur Sports Protection Act in 2018 from the US Supreme Court, the sports betting tax revenue has dramatically surged.

Here are some figures for a better understanding: In 2024 alone, around $148 billion was legally wagered in sports betting activities, which is a staggering number. Guess how much went to tax revenue? This resulted in close to $370 million. That’s another shocking figure for you to think about.

The sports betting tax revenue is expected to climb even higher once Arizona’s numbers for November and December roll in. No doubt, the industry is cashing in big time.

Once again, there’s a competition over what to do with the federal sports betting tax revenue. Some legislators are seeking ways to put the money toward dealing with problem gambling.

In this sense, Oregon Representative Andrea Salinas and Connecticut Senator Richard Blumenthal reintroduced the Gambling Addiction Recovery, Investment, and Treatment Act on February 7. This bill would supposedly funnel part of the tax funds to Health and Human Services programs. This bill has some solid backing, with the National Council on Problem Gambling showing its support for the idea.

Nevada’s rep Titus has been fighting the sports betting tax for quite some time, and for a good reason, as it seems. The federal sports betting excise tax doesn’t only include a percentage of total wagers but also a $50 tax per sportsbook employee.

To put this in perspective, Silver State’s retail sportsbooks took in around $2.7 billion in sports betting last year, which resulted in some $66.8 million in taxes. While Nevada saw a massive $7.9 billion in overall wagers in 2024, it was still down 4.4% year-on-year.

Priya Patel
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