“We have momentum” to end the federal betting tax in 2021, say Bill Sponsors
Politicians out Nevada and Pennsylvania are back for yet another rift in ending federal betting on sports betting.
PA MEP Guy Reschenthaler and its co-chair of Congressional Gaming Caucus In Titus said Thursday they have submitted a new bill on the matter.
The legislation aims to repeal that 0.25% Excise tax on all legal sports betting, known as “handle tax”. It would end that too $ 50 per capita Annual Fee Sports betting providers pay for employees who can accept bets.
Titus failed three times before to End the tax, including an effort in the past year. But the Nevada representative said the momentum was “finally on our side”.
Why is the time to end the tax?
Titus said the tax made it difficult for sports betting to recover from the coronavirus pandemic.
“The Handle Tax penalizes legal gambling operators and encourages consumers to place bets illegally.” Said Titus. “As more states recognize the benefits of legalizing and regulating sports betting, the abolition of the tax will create job creation in southern Nevada and across the country.”
Of course, the political landscape has changed since the earlier efforts of the Democrats who now control congress and the White House.
Treat taxes favoring black market
Reschenthaler echoed Titus when he said tax-favoring offshore operators.
He said: “The [sports betting] The industry is hampered by an outdated tax law and onerous regulations that penalize legal, regulated operators and give illegal operations an unfair advantage. ”
The American Gaming Association (AGA) estimated the federal excise tax less than $ 33 million for the U.S. government in 2019. Titus had previously tried to figure out where those funds went in 2014 but couldn’t find an answer.
She said Nevada alone paid more than $ 13.3 million in Handle Tax in 2019.
The BUT also issued a statement in support of the bill. AGA President Bill Miller said the tax was originally intended to penalize illegal betting providers but is now the opposite.
“If Congress is to position the legal sports betting market for success,” Miller said. “It has to remove this unnecessarily burdensome tax in order to improve the playing field for legal sports betting.”