Two U.S. lawmakers, Rep. Guy Reschenthaler (R-Pa.) and Rep. Dina Titus (D-Nev.), have introduced a bill that aims to eliminate the federal excise tax on sports betting in the United States. The bill, called the Gaming Tax Relief Act, would repeal the 0.25% tax on sports wagers that was imposed by the federal government in 1951.

The tax, which is also known as the “handle tax,” is levied on the total amount of money wagered on sports events. It is paid by sportsbooks and is intended to help fund federal programs such as education, infrastructure, and healthcare.

However, the lawmakers argue that the tax is outdated and unfair, especially in light of the recent Supreme Court ruling that struck down a federal ban on sports betting. Since the ruling, several states have legalized sports betting and are now collecting tax revenue from it.

In a joint statement, Titus and Reschenthaler said that “eliminating this tax will help spur economic growth in the gaming industry and create jobs across the country.” They added that the tax “disproportionately impacts legal, regulated sportsbooks and puts them at a competitive disadvantage against illegal, offshore operators.”

The American Gaming Association (AGA), a trade group that represents the casino industry, has also expressed support for the bill. In a statement, AGA President and CEO Bill Miller said that “eliminating this tax will allow legal, regulated sportsbooks to compete on a level playing field with illegal operators, which will ultimately benefit consumers and the integrity of sports.”

According to a report by Eilers & Krejcik Gaming, a research firm that specializes in the gaming industry, the handle tax is expected to generate about $9 million in revenue for the federal government in 2021. However, the report also notes that the tax could discourage some states from legalizing sports betting, as it would reduce their potential tax revenue.

The Gaming Tax Relief Act has been referred to the House Ways and Means Committee for further consideration. It remains to be seen whether the bill will gain enough support to pass both chambers of Congress and become law.

In conclusion, the Gaming Tax Relief Act is a proposed bill that seeks to eliminate the federal excise tax on sports betting in the United States. The bill’s sponsors argue that the tax is outdated and unfair, and puts legal sportsbooks at a competitive disadvantage. If passed into law, the bill could spur economic growth in the gaming industry and create jobs across the country. However, it remains to be seen whether the bill will gain enough support to become law.