Representatives Guy Reschenthaler and Dina Titus are attempting to have the 0.25 percent federal excise tax on sports betting handle repealed.
The 0.25 percent tax on the total amount wagered and a $50 per member of staff tax on sportsbook employees have been in place since 1951 and were introduced to try to stem illegal gambling.
It comes weeks into the start of President Donald Trump’s second premiership, which has already seen seismic policy shifts. Trump is famously pro-crypto, and industry experts expect deregulation at a federal level that could pave the way for legalized crypto sports betting and iGaming in the future.
Similarly, there is considerable industry discussion around event markets and Commodity Futures Trading Commission-regulated products that effectively offer legalized wagering country-wide.
Why Lawmakers Want to End the Federal Sports Betting Tax
The co-chairs of the bipartisan Congressional Gaming Caucus commented: “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.”
Titus continued: “Illegal sportsbooks do not pay the .25 percent sports handle tax and the accompanying $50 per head tax on sportsbook employees, giving them an unfair advantage.”
Currently, there are no States that accept cryptocurrency as a payment method for legalized gambling.
Congresswoman Titus also emphasized that no one knows where the federal tax revenue even goes. “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,” she continued.
2025 marks the fourth filing in consecutive legislative sessions since the repeal of the Professional and Amateur Sports Protection Act. The same filing was made in 2019, 2021 and 2023.
Congressman Reschenthaler commented: “Unfortunately, outdated tax codes and burdensome regulations penalize legal operators and incentivize illegal activity.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.”
iGaming Continues to Grow, But Expansion Stuttering
New Jersey’s recent financial results for January showed a sharp decline in sports betting revenue but a continued rise in iGaming receipts.
Legalization of iGaming and discussion around further legalization efforts in the United States are at pivotal points as the first legislative session of the year rumbles on.
Crypto is currently not the central focus of any gambling legislation nor pressure groups. With landbased venue executives forming the National Association Against iGaming and releasing results of a report suggesting legalized online casino does huge damage to local communities and is economically detrimental, deregulation of crypto may only come at the federal level in the short term.
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