Rep. Dina Titus and Rep. Guy Reschenthaler have once again introduced a federal bill that would eliminate a 0.25% excise tax on all sports betting wagers placed within the United States.
Titus and Reschenthaler have attempted the same thing multiple times over the past few years, failing each time. The tax also includes a $50 annual fee per sportsbook employee.
However, the duo is with another bill hoping they can get a win on behalf of the gaming industry and even out the excise tax inequity between legal and illegal sports betting operators.
Titus focuses on excise tax’s unfairness toward legal operators
In a statement about the act, Titus said the excise tax is outdated and hurting legal operators since illegal operators don’t have to pay the tax:
“The Discriminatory Gaming Tax Repeal Act of 2025 repeals a tax that does nothing except penalize legal gaming operators for creating thousands of jobs in Nevada and 37 other states around the nation. Illegal sportsbooks do not pay the .25% sports handle tax and the accompanying $50-per-head tax on sportsbook employees, giving them an unfair advantage.”
While Titus seems to be focusing on how the tax benefits illegal operators, Reschenthaler has emphasized how the money operators would free up from not having to pay the excise tax would provide a considerable economic boost for his constituents in Pennsylvania and the gambling industry at large.
“The U.S. gaming industry provides over one million jobs, including over 33,000 jobs in Pennsylvania, and generates more than 70 billion dollars for state and local governments throughout the country,” Reschenthaler said. “Unfortunately, outdated tax codes and burdensome regulations penalize legal operators and incentivize illegal activity.”
How much collected by sports betting excise tax?
According to the American Gaming Association, U.S. sports betting generated $147.91 billion in handle in 2024. Based on that figure, it’s estimated that the federal excise tax generated nearly $370 million in revenue.
While that number is just a fraction of the tax revenue the government generates, it’s a burden on sportsbook operators, the AGA said.
Even before paying the federal excise tax, sportsbooks are low margin businesses with high operating costs including licensing fees, state taxes and other compliance expenses,” the AGA noted in a statement about a call to repeal the excise tax in 2024.
