NCPG Statement on WAGER Act to Repeal the Federal Sports Betting Excise Tax
The National Council on Problem Gambling (NCPG) today released the following statement after Senators Catherine Cortez Masto (D-NV) and Cindy Hyde-Smith (R-MS) announced the reintroduction of the WAGER Act, which aims to repeal the federal excise tax on sports wagering:
“While NCPG takes no position on the legalization of gambling itself, we firmly believe that anyone who profits from gambling has an ethical and economic obligation to dedicate resources to mitigate the harm created by legalized gambling.
“Since the 1950s, the federal government has levied an excise tax on sports wagers. While the rate has changed over time, it has stood at 0.25% for legal bets since 1982, generating $150–$300 million annually in recent years. Yet not a single federal dollar is directed to problem gambling prevention, treatment, or research. By contrast, billions in federal funds are dedicated to addressing alcohol, tobacco, and drug addiction.
“There is a clear precedent for using excise taxes to support public health. The 1998 Tobacco Master Settlement Agreement and subsequent federal and state tobacco excise taxes have directed billions toward smoking prevention and cessation. The CDC’s Office on Smoking and Health is funded in part by these federal excise taxes, creating a stable and reliable source of support for prevention programs that save lives. Alcohol and opioid-related surcharges in many states are also earmarked for treatment and recovery.
“The absence of federal funding for gambling addiction is a glaring gap. Nearly 9 million American adults struggle with a gambling problem, costing an estimated $14 billion annually. Our latest NGAGE survey found that almost 20 million adults—8% of the population—reported at least one indicator of problematic gambling “many times” in the past year.
“The federal sports betting excise tax is a longstanding revenue source supported across the political spectrum. Dedicating a portion of this tax to help American families with problem gambling services would be the fairest and most cost-effective way for Congress to help states supplement prevention and treatment for their communities. If Congress chooses to adjust the tax rate on the gambling industry, NCPG recommends that any change be paired with a reciprocal commitment to fund prevention, treatment, and research to help those battling this life-threatening addiction.”