These days, not much on Capitol Hill is receiving support from both parties. Nonetheless, both Republicans and Democrats are beginning to support the idea that the federal government ought to assist problem gamblers more.

Every legitimate sports wager in the US is subject to a 0.25% excise tax levied by the federal government. The US government additionally levies a $50 "head" tax on sportsbook employees.

The annual cost of the fees is approximately $400 million. Congress has acknowledged that the precise use of the funds is unclear. US Representative Dina Titus (D-NV) claimed that she asked IRS personnel where the handle tax revenue went in the federal budget but received no response. Consequently, the funds are kept in the General Fund, sometimes known as America's Checkbook.

By dedicating at least one-third of the federal sports wagering excise tax to programs and initiatives that address gambling addiction, the POINTS Act (Providing Opportunities for Individuals in Need of Treatment and address) would change that.

 

A Bipartisan Bill on Gambling 

Reps. Mariannette Miller-Meeks (R-IA), Erin Houchin (R-IN), Andrea Salinas (D-OR), and Troy Carter (D-LA) are the four bipartisan members behind the POINTS Act.

The measure would create a federal grant system for initiatives that assist states in improving gambling disorder and addiction prevention, treatment, and recovery services. Rural towns and high-risk groups, including young people, men, veterans, and Native Americans, would be given priority for the grants.

"As sports betting and online gambling continue to expand across the country, we have a responsibility to ensure people struggling with addiction are not left behind. Gambling addiction can devastate individuals and families, yet too many communities still lack the resources needed to provide prevention, treatment, and recovery support,” said Salinas.

The National Council on Problem Gambling organizes Problem Gambling Awareness Month every year in March. On Capitol Hill, the NCPG is supporting the POINTS Act.

"Despite the prevalence of gambling addiction in the United States, no federal agency is tasked with addressing it, and no federal funds are designated for treatment or research,” the NCPG said in a statement.

Nearly 20 million American adults (8%) are estimated by the NCPG to encounter at least one sign of problematic gambling activity "many times" annually.

$100 Million Advantage

The federal government would set aside an estimated $100 million annually for problem gambling assistance if the POINTS Act were to become law. A third of the estimated $300 million federal excise tax on sports betting this year would be about $100 million.

For the first time, gambling addiction would be recognized as a mental health disease under federal law thanks to the funding, which would come with no additional taxes.