While one bill to use the federal sports betting excise tax was refiled last week, a piece of legislation repealing the tax was reintroduced this week.
On Tuesday, Reps. Dina Titus and Guy Reschenthaler reintroduced The Discriminatory Gaming Tax Repeal Act, which would remove the 0.25% sports betting tax on all wagers placed in the US. The handle tax was enacted in 1951.
“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,” Titus said. “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.
“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.”
Sports betting tax repeal
Titus and Reschenthaler co-chair the Congressional Gaming Caucus. They co-sponsored similar legislation in 2019, 2021 and 2023. Titus has championed the effort since 2014.
The handle tax was put in place to counter offshore and illegal sports betting operators. The co-authors said the tax now gives illegal operators a leg up.
“Unfortunately, outdated tax codes and burdensome regulations penalize legal operators and incentivize illegal activity,” Reschenthaler said. “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.”
GRIT Act also refiled
While the legislation filed this week would repeal the handle tax, a bill filed last week would put it to use. Rep. Andrea Salinas and Sen. Richard Blumenthal refiled the Gambling Addiction Recovery, Investment and Treatment Act last week.
The GRIT Act would direct funds generated by the handle tax to study, prevent and treat problem gambling.
Since PASPA was repealed in 2018, sportsbook operators have paid more than $500 million in excise tax.
