The co-chairs of the bipartisan Congressional Gaming Caucus have reintroduced legislation to repeal the 0.25 per cent federal excise tax on sports wagers.
The federal excise tax on sports wagers was enacted in 1951 to combat illegal gambling and has been the subject of numerous repeal efforts in recent years by Representatives Dina Titus (D-NV) and Guy Reschenthaler (R-PA), co-chairs of the Congressional Gaming Caucus.
Since the US Supreme Court overturned the Professional and Amateur Sports Protection Act in 2018, sports betting has been legalised in 38 states and the District of Columbia, but the federal excise tax on sports wagers remains in place.
This is seen as an impediment to the growth of regulated sports betting in the United States, and a boon to unlicensed offshore operators who are not subject to 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,” said Congresswoman Titus.
“Illegal sportsbooks do not pay the .25 per cent sports handle tax and the accompanying $50 per head tax on sportsbook employees, giving them an unfair advantage. I once asked the IRS where the revenue from the handle tax went in the federal budget and they didn’t even know. It makes no sense to give the illegal market an edge over legal sports books with a tax the federal government does not even track.”
Congressman Reschenthaler added: “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.
“Unfortunately, outdated tax codes and burdensome regulations penalize legal operators and incentivize illegal activity. The Discriminatory Gaming Tax Repeal Act of 2025 will ensure the gaming industry can support good-paying jobs and promote economic growth in southwestern Pennsylvania and across the nation. I’m proud to join Gaming Caucus Co-Chair Titus in introducing this bipartisan legislation, and I urge our colleagues in the House to support it.”
This marks the fourth attempt by Representatives Titus and Reschenthaler to repeal the tax, having introduced similar legislation in 2019, 2021 and 2023.