Two US Senators have filed a bill that would abolish the 0.25% federal excise tax on gambling, a charge operators have to pay based on handle rather than gross gaming revenue.
Senators Cindy Hyde-Smith and Catherine Cortez Masto, the senators behind the “Withdrawing Arduous Gaming Excise Rates Act,” believe that the tax relief will lead to higher job creation in the industry and help combat the black market.
operators can save tens of millions of dollars annually if this change goes into effect
The American Gaming Association (AGA) supports the legislation, saying that operators can save tens of millions of dollars annually if this change goes into effect. The trade association believes that the current 0.25% tax hurts competition and is a reward to illegal offshore operators.
This is not the only bill up for consideration regarding the federal excise tax. The GRIT Act was introduced in January to maintain the current rate while directing half of the money towards gambling addiction services.