A bill taking aim at gambling addiction tied to US sports betting has been reintroduced in Congress.
Last week, Rep. Andrea Salinas and Sen. Richard Blumenthal introduced the Gambling Addiction Recovery, Investment and Treatment Act, or GRIT Act. The legislation would dedicate federal funds from US sports betting taxes to study, prevent and treat gambling addiction in the US.
“The growing legalization of sports betting coupled with the ability to place bets from your phone whenever you want have created the perfect storm for gambling addiction — resulting in a severe public health crisis,” Blumenthal said in a release. “The GRIT Act will allocate dedicated federal funding to tackle problem gambling head-on, allowing individuals suffering from gambling addiction to access support, resources, and treatment. With this legislation, we work to stop addiction and save lives.”
The pair of lawmakers introduced the same legislation last year.
GRIT Act details
Proponents say approximately 9 million Americans struggle with problem gambling, which results in $14 billion in societal harm.
“Gambling can be a fun and harmless form of entertainment when enjoyed in moderation,” Salinas said. “Unfortunately, the rapid rise in online gambling has made it easier than ever to place bets — leading to a drastic increase in the number of Americans who are struggling with a gambling addiction.”
The legislation would include various responsible gambling pieces, including:
- Allocating 50% of the federal excise tax on sports betting to gambling addiction treatment — 75% going to the states and 25% to the National Institute of Drug Abuse to fund research grants for gambling addiction.
- Authorizing spending for 10 years and requiring the Secretary of Health and Human Services to submit a report to Congress on the program’s effectiveness within three years of passage.
- Providing support to state health agencies.
- Allowing investment in best practices and comprehensive research.
US sports betting tax details
The US government taxes sports betting handle at 0.25% across the country.
Since the end of PASPA in 2018, sportsbook operators have paid more than $500 million in federal excise tax.
Lawmakers have filed legislation to abolish the tax in recent years.
Endorsement for legislation
The GRIT Act received support from multiple problem gambling organizations:
- National Council on Problem Gambling
- Oregon Council on Problem Gambling
- Connecticut Council on Problem Gambling
Federal attention on sports betting
US lawmakers are increasingly paying more attention to the growth of online gambling.
In December, the Senate kicked off what could be a series of hearings on the industry.
Along with the GRIT Act, Blumenthal co-authored the Supporting Affordability and Fairness with Every Bet Act with Rep. Paul Tonko. The SAFE Bet Act calls for advertising restrictions, deposit limits and a college prop bet ban.
