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The American Gaming Association, AGA, founded to promote, educate, and lobby on behalf of the gambling industry, reported a record $17.71 billion in commercial gaming revenue...
Bill to repeal US gambling excise tax filed
On Wednesday, July 31, two senators from the US introduced a bill that aims to repeal the federal excise tax imposed on gambling activities within the country. In addition to state taxes, there is also an excise tax of 0.25% on every approved bet placed.
Senators Catherine Cortez Masto from Nevada and Cindy Hyde-Smith from Mississippi filed the bill.
The American Gaming Association (AGA) quickly came out in favor of the bill with the hope that this bill would allow the operators to save tens of millions in tax payments every year.
The association stated:
“The federal sports betting excise tax was enacted more than 70 years ago as a tool to prosecute illegal sports betting operators. Today, with sports betting legal in 38 states and Washington DC, this antiquated tax puts legal operators at a competitive disadvantage and rewards illegal offshore bookmakers that pay no federal or state taxes, offer no responsible gaming tools, and have no systems in place to prevent underage customers from using their platforms.”
The operators of US sports betting, along with the state senator from Nevada, Dina Titus, argue that this tax punishes the legal operators while helping those who run illegal businesses.
According to Fanatics Betting & Gaming VP Brandt Iden, the removal of this tax will be one of the ways of fighting against offshore betting activities.
The excise tax was introduced in 1951 and has been condemned by many as an archaic and irrelevant form of taxation since it has continued to be recommended that each state should have its gambling laws and responsible gaming programs.
Consultant Brendan Bussmann told iGB:
“By eliminating the excise tax, we can help lower the tax burden that every sports betting operator pays. It helps create a more competitive market against the illegal operators that do not pay state or federal taxes. The Department of Justice still has a responsibility to combat illegal gaming and should use every resource to combat these operators and affiliates that support these organisations.”
Cortez Masto said:
“Nevada is home to multiple championship-level sports teams and we know better than anyone that responsible, legal sports betting can be a great revenue source for our local economy. My bipartisan legislation will ensure our sports gaming industry can provide essential tax relief to consumers and our sports gaming industry, creating more jobs and keeping our tax money in the state while cracking down on illegal activities.”
The gambling excise tax also imposes a $50 “head tax” on gambling employees that companies must pay per employee.
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