Chapter 35 of the Internal Revenue Code — the federal excise taxes on wagering — would be repealed under a bipartisan bill from Rep. Titus and a Nevada/Pennsylvania group. Those taxes apply both to authorized sportsbooks (a 0.25% handle tax on legal bets) and to unauthorized wagering operators (2% handle tax), plus a $50/year occupational tax on individuals accepting bets. Sponsors describe the taxes as discriminatory against legal, regulated sportsbook operators because the 0.25% handle tax is functionally a competitive disadvantage versus untaxed offshore operators. The repeal would apply to taxable years beginning after December 31, 2024.
Corporate Benefits
- Federal wagering excise taxes — Chapter 35 of the Internal Revenue Code repealed
Congressional Summary
Discriminatory Gaming Tax Repeal Act of 2025This bill repeals the excise tax imposed on wagers (also known as the handle tax) and the occupational tax imposed on businesses receiving taxable wagers.As background, an excise tax on wagers is imposed on businesses that accept wagers, persons conducting a wagering pool or lottery, and certain persons accepting wagers on behalf of another person. Under current law, the amount of the excise tax is (1) 0.25% of the amount wagered (also known as the handle) for wagers authorized by the state, or (2) 2% of the amount wagered for wagers not authorized by the state. (Some exceptions apply.)Further, under current law, an annual occupational tax is imposed in the amount of (1) $50 for persons in the business of accepting taxable wagers (or persons accepting taxable wagers on such persons’ behalf) in a state where the wagers are authorized, or (2) $500 for such persons in states where the wagers are not authorized. (Some exceptions apply.)
Details
- Congress
- 119th
- Chamber
- House
- Status
- summarized
- Action
- Introduced in House
- Action Date
- 2025-02-18
- Date Added
- 2026-05-07
- Source
- Congress.gov →
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