You wouldn’t think that good people doing the right thing would be in opposing camps.
But the federal excise tax on sports betting handle has done just that.
The tax is a relic from the 1950s used to track illegal activity when Nevada had the only game in town. Today it’s the focal point of the Gambling Addiction Recovery, Investment, and Treatment Act (GRIT). Senator Richard Blumenthal and U.S. Rep. Andrea Salinas introduced the proposal earlier in the month. GRIT will dedicate 50 percent of the excise tax of 0.0025 percent to help pay for problem gambling.
Nevada Rep. Dina Titus, who has fought to end the excise tax for almost a decade, has joined with the American Gaming Association (AGA) in opposing GRIT. Is Titus and the AGA against funding for problem gambling?
Nope.
They oppose the excise tax no matter what it’s used for, according to Yogonet Gaming News.
States with legalized sports betting “also fund responsible gaming resources to address problem gambling,” making GRIT redundant, Titus said.
AGA Senior Vice President Chris Cylke said nearly every tax dollar for problem gambling comes from “casino gaming taxes, including new legal sports betting and iGaming markets.”
The bill heads to the House Energy & Commerce Committee and the Senate’s Health, Education, Labor, and Pensions committee.
The AGA supports a bipartisan bill by Titus and Pennsylvania Rep. Guy Reschenthaler to repeal a tax. A similar bill fell short every year since 2020.
Salinas and Blumenthal said in a statement that GRIT would create the first ever federal funding stream for problem gambling.
“The growing legalization of sports and online betting, paired with the ability to place bets from your phone whenever you want has created a perfect storm for gambling addiction,” Blumenthal told the Nevada Independent. “Dedicated federal resources to tackle problem gambling head-on will provide much-needed support, resources, and treatment for those suffering from gambling addiction.”
The legislation has the support of the National Council on Problem Gambling.
In 2023, the excise tax brought $250 million into the coffers. Under GRIT, $125 million would fund research, treatment and other elements of problem gambling.
