American Gaming Association president and CEO Bill Miller has released a statement on bipartisan legislation Reps Dina Titus (NV-01) and Guy Reschenthaler (PA-14), introduced to repeal the federal excise and head taxes.
He said: “The federal excise and head taxes levied on legal US sportsbooks generate little meaningful revenue for the government. Instead, they place legitimate businesses at a significant competitive disadvantage against illicit gambling operations which skirt taxes and licensing fees. Though originally enacted in the 1950s as a tool to curb illegal gambling, these antiquated federal taxes now give illegal operators a leg up.
“To absorb the unnecessary burden of these taxes, legal sportsbooks are forced to offer worse odds and payouts or reduce investment in promoting legal betting channels to the public. Furthermore, the head tax serves as an impediment to hiring at a time when providing jobs is critical.
“I’m grateful to the Congressional Gaming Caucus’ Co-Chairs Reps Titus and Reschenthaler for introducing this legislation to provide regulated operators with meaningful relief as they recover from the Covid-19 sports shutdown. Eliminating these taxes is a long overdue step to enable a legal, regulated environment for sports betting that will better protect customers and generate much-needed revenue for state and local economies.”