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Members of Congress propose legislation to repeal ‘handle tax’

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dani3839

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Source/Full Story - GamingAmerica'

This tax has been in effect since 1951.
Key points:

- Lawmakers in favor of repealing this tax say this could aid the job market

- They claim a tax like this is no longer relevant.

Two representatives have reintroduced legislation that would repeal the “handle tax,” which requires that
a .25% excise tax be placed on all legal sports wagers.

Nevada Representative Dina Titus of Pennsylvania Representative Guy Reschenthaler serve as co-chairs of the bipartisan
Congressional Gaming Caucus and put the proposed legislation before lawmakers this week. They have named this
“The Discriminatory Gaming Tax Repeal Act of 2025.”

Lawmakers first enacted the handle tax in 1951 as a way to counter illegal gambling. Those wanting to repeal
the tax believe that it is “no longer relevant today.”

Titus released a statement, outlining reasons for repealing the handle tax and said, “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.

“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.”

Good to know: The duo has introduced similar legislation in past years, including in 2019, 2021 and 2023

Representative Reschenthaler explained how the gaming industry affects the job market in his state and said he
believes that repealing the handle tax could further support the workforce.

He commented, “The US gaming industry provides over one million jobs, including over 33,000 jobs in Pennsylvania,
and generates more than $70bn for state and local governments throughout the country.

“Unfortunately, outdated tax codes and burdensome regulations penalize legal operators and incentivize illegal activity.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.”
 

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