A bill that would remove the federal excise tax on legitimate sports wagers has been introduced by two U.S. representatives. The law, called “The Discriminatory Gaming Tax Repeal Act of 2025,” aims to eliminate the 0.25% handle fee that is applied to all legal sports wagers.
The effort to eliminate the tax is being spearheaded by Representatives Dina Titus of Nevada and Guy Reschenthaler of Pennsylvania, who are co-chairs of the nonpartisan Congressional Gaming Caucus. Critics contend that the handle tax, which was first implemented in 1951 to prevent illegal gambling, is no longer effective.
Titus strongly opposes the tax, stating, “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.”
She further highlighted that illegal sportsbooks do not pay this tax, giving them a financial advantage over legal operators. She added, “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.”
Economic Impact on the Gaming Industry
Reschenthaler emphasized the broader economic impact of the gaming sector. He pointed out that the industry generates over $70 billion in state and local tax revenue and provides more than one million jobs nationwide, including 33,000 in Pennsylvania.
He stated, “Unfortunately, outdated tax codes and burdensome regulations penalize legal operators and incentivize illegal activity.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.”
Supporters believe repealing the handle tax will strengthen the legal gaming industry while curbing illegal operations. The bill now awaits further discussion in Congress.
The post Lawmakers Push to Repeal Federal Handle Tax on Sports Betting appeared first on iGaming.org.