Bill aims to repeal federal sports betting excise tax
Summary
Senators Catherine Cortez Masto (D-Nev.) and Cindy Hyde-Smith (R-Miss.) have reintroduced the bipartisan WAGER Act to remove a federal excise tax on legal sports wagers. The bill would exempt regulated sportsbooks from the 0.25% “handle” tax on wagers and the $50-per-employee annual “head” tax that date back to the 1951 Internal Revenue Code.
The pair previously introduced the WAGER Act in 2024, but it stalled when Congress adjourned. Supporters argue the tax is outdated, gives illegal offshore operators an unfair advantage, and burdens states and tribal communities that rely on gaming revenue. Nevada — cited by sponsors — paid nearly $22 million in handle taxes in 2022, up sharply from earlier years.
The measure has a House counterpart from Reps. Dina Titus (D-Nev.) and Guy Reschenthaler (R-Pa.). Sponsors frame the repeal as targeted tax relief for an industry facing visitation and revenue headwinds in 2025, and as a move to modernise federal policy on gambling taxation.
Key Points
- The WAGER Act would exempt regulated sportsbooks from the 0.25% federal “handle” excise tax on wagers.
- It would also repeal the $50 annual “head” tax per employee for betting operators.
- Sponsors claim repeal would protect legal sportsbooks, help states and tribal communities reinvest gaming revenues locally, and reduce incentives for illegal betting operations.
- The bill is bipartisan — led in the Senate by Cortez Masto (D-Nev.) and Hyde-Smith (R-Miss.) and in the House by Titus (D-Nev.) and Reschenthaler (R-Pa.).
- Similar proposals have been introduced before; the 2024 version failed to pass before Congress adjourned.
- Nevada paid nearly $22 million in handle taxes in 2022, a figure sponsors use to illustrate the financial impact.
Why should I read this?
Quick and to the point: if you care about casinos, sportsbooks, state tax receipts or the competitiveness of legal betting versus offshore operators, this matters. Repealing a small-sounding federal levy could free up real money for operators and local economies — and it’s a neat example of bipartisan action on an industry-specific tax.