A new bill aims to eliminate the federal excise tax, which requires sports betting providers to pay $ 50 annually per employee and a 0.25% tax on sports betting. The proposal was presented by the representatives Dina Titus and Guy Reschenthaler.
New bill aims to eliminate excise tax on sports betting
Introduced in the 1950s, the The federal consumption tax is 0.25% Sports betting tax. In addition, the tax forces all sports betting Paying $ 50 annually per employee. Although some companies are exempt from excise duty, many legal operators still pay it. The main purpose of the tax, also known as The tax to be managed was to combat illegal gambling operations.
Thanks to a new proposal tabled in Congress on Thursday this week, the outdated tax could soon be abolished. A non-partisan law was presented by Representative Dina Titus (NV-1) and Guy Reschenthaler (PA-14) aims to abolish the excise duty on legal sports betting. Although a similar bill to abolish excise tax failed last year, the two lawmakers could finish what they started this year.
The Handle Tax penalizes legal gambling operators and encourages consumers to place bets illegally. That’s why I introduce laws with @GReschenthaler to repeal them.
– Dina Titus (@repdinatitus) April 1, 2021
Dealing with taxes punishes legal gaming operators
In 2019, Nevada gambling operators paid around $ 13.3 million in handle taxes. This was the highest handle tax paid by any other state. However, when Titus asked the federal government How was the money spent? The IRS couldn’t answer how the money was used“.
“The Handle Tax penalizes legal gambling operators and encourages consumers to place bets illegally.”
Representative Dina Titus
Well, that’s what Titus said The antiques tax can push some consumers into the illegal market. She also admitted that more and more states are legalizing and regulating sports betting. So, The abolition of the tax will help create jobs not just in Nevada but across the country, added Titus.
Representative Titus admitted that the The unemployment rate in Las Vegas is the second highest from every major subway area in the country. As a result, it would become more difficult to force sports betting to pay taxes on every employee economic recovery. In closing, she said she looked forward to working with Congressman Reschenthaler to make the bill into law.
AGA supports the proposal to abolish the excise duty
Congressman Reschenthaler said that The Pennsylvania gambling sector supports 33,000 jobs and has one Economic impact of $ 6.34 billion. He acknowledged that the tax and burdensome regulations are out of date as a penalty for the licensed regulated operator. In addition, Reschenthaler emphasized that this would give illegal operators “an unfair advantage”.
According to him, the proposal will go promote the recovery of the industrywho was badly hit by COVID-19. He also added that the bill will boost well-paying jobs and economic growth in southwest Pennsylvania and across the country.
“I am grateful to Congressional Gaming Caucus co-chairs, Titus and Reschenthaler, for introducing this much-needed legislation that will further fuel the growth of the legal market and better protect customers.”
Bill Miller, President and CEO of the American Gaming Association
In a statement, Bill Miller, CEO and President of American Gaming Association (BUT) showed support for the proposal by Reschenthaler and Titus. He stressed that the original purpose of the excise duty was to punish illegal operators. But now It helps the offshore operatorsMiller added. Additionally, he said if Congress is to increase the success of the legal sports betting market, it must do so eliminate the “unnecessarily burdensome tax”.