Senators Catherine Cortez Masto from Nevada and Cindy Hyde-Smith from Mississippi have taken action by filing a bill to eliminate the federal excise tax on sports betting. This tax, which amounts to 0.25 percent of any legal wager, is in addition to state taxes on betting activities.
The bill, known as the “Withdrawing Arduous Gaming Excise Rates Act” or the WAGER Act, aims to provide relief to operators in the sports betting industry. The American Gaming Association (AGA) has expressed its support for this legislation, stating that it could potentially save operators millions of dollars annually in taxes.
The AGA argues that the federal sports betting excise tax, which has been in place for over 70 years, is outdated and no longer serves its original purpose of targeting illegal betting operators. With legal sports betting now available in 38 states and Washington, DC, the tax puts legal operators at a disadvantage by allowing illegal offshore bookmakers to evade federal and state taxes while lacking responsible gaming measures and age verification protocols.
This move by Senators Masto and Hyde-Smith is seen as a step towards creating a more level playing field for legal sports betting operators and eliminating barriers that hinder their ability to compete with unauthorized offshore platforms. The repeal of the excise tax could lead to significant cost savings for operators, enabling them to reinvest in their businesses, offer better odds to customers, and enhance responsible gaming initiatives.
The WAGER Act represents a bipartisan effort to address an issue that has long been a concern for the gaming industry. As the sports betting landscape continues to evolve and expand across the country, it is crucial to modernize the regulatory framework and taxation system to reflect the current reality of the market.
The support from the AGA and other stakeholders in the industry underscores the importance of revisiting outdated regulations and eliminating unnecessary financial burdens on legal operators. By repealing the federal excise tax on sports betting, lawmakers can foster a more competitive and sustainable environment for the industry while ensuring consumer protection and responsible gaming practices are upheld.
In conclusion, the filing of the WAGER Act is a significant development in the ongoing efforts to reform the taxation of sports betting in the United States. This legislative proposal has the potential to bring about positive changes that benefit operators, consumers, and the overall integrity of the industry.