Nevada Senator Catherine Cortez Masto (D) and Mississippi Senator Cindy Hyde-Smith (R) introduced the Withdrawing Arduous Gaming Excise Rates Act on Wednesday to the United States Senate, a bipartisan piece of legislation that seeks to repeal the 0.25% federal excise tax on sports betting handle.
The WAGER Act is a corresponding bill to a bipartisan one in the U.S. House of Representatives authored by Nevada Rep. Dina Titus (D) and Pennsylvania Rep. Guy Reschenthaler (R) that was submitted last year. Both bills have the backing of the American Gaming Association.
“The federal sports betting excise tax was enacted more than 70 years ago as a tool to prosecute illegal sports betting operators,” AGA President and CEO Bill Miller said in a statement Wednesday. “(W)ith sports betting legal in 38 states and Washington, D.C., 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 AGA is grateful to Senators Cortez Masto and Hyde-Smith for their commitment to providing a safe, responsible sports betting market and to continuing to help migrate bettors out of the illegal market, which is bereft of consumer protections and a haven for bad actors and tax evaders. The AGA will continue to work with policymakers to enact legislation to address this harmful tax.”