{"id":6864,"date":"2018-05-22T22:44:51","date_gmt":"2018-05-22T22:44:51","guid":{"rendered":"https:\/\/www.pokerscout.com\/?p=6864"},"modified":"2018-05-23T15:38:35","modified_gmt":"2018-05-23T15:38:35","slug":"aga-urges-federal-government-to-cut-sports-betting-taxes","status":"publish","type":"post","link":"https:\/\/www.pokerscout.com\/aga-urges-federal-government-to-cut-sports-betting-taxes\/","title":{"rendered":"AGA Urges Federal Government To Cut Sports Betting Taxes"},"content":{"rendered":"
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The American Gaming Association<\/strong>\u00a0(AGA) wants to repeal or reduce the federal excise tax on sports betting<\/strong>, a highlight among post-PASPA priorities released Thursday by the group.<\/p>\n

Gaming\u2019s lobbying arm also encouraged federal lawmakers to let state and tribal authorities<\/strong> set their own sports betting rules. That backs comments AGA President Geoff Freeman<\/strong> made after PASPA\u2019s repeal, saying \u201cthat ship has sailed\u201d on federal legislation<\/strong>.<\/p>\n

AGA\u2019s priorities also include creating a national sports-betting data repository<\/strong> to help law enforcement, casino operators, and sports leagues monitor suspicious activity.<\/p>\n

AGA turns to federal excise tax after death of PASPA<\/h2>\n

Freeman\u2019s letter to federal legislators<\/a> lays out the AGA\u2019s preferred guidelines, but its most interesting ask comes at the end. In a section discussing potential next steps, Freeman implores Congress to examine the 0.25 percent federal tax on <\/strong>handle.<\/p>\n

For its part, one notable example where Congress can make an immediate impact is reexamining the federal excise tax currently levied on sports wagers. This 1951 tax was originally intended to serve as an enforcement tool against illegal gambling, but instead hinders the ability of the legal market to compete with illegal operations that do not pay any taxes.<\/p><\/blockquote>\n

Freeman likely will have an ally in Nevada Rep. Dina Titus<\/strong>, D-Las Vegas. Titus called for an end to the federal tax late last year.<\/p>\n

The federal excise tax, then and now<\/h2>\n

As Freeman references, the tax came into existence in 1951<\/strong> as a method of helping states crack down on gambling activity. At 10 percent<\/strong> of handle, the tax crippled most operators and chilled potential new operations.<\/p>\n

Congress reduced the tax from 10 percent to 2 percent<\/strong> in 1974<\/strong>, ushering in a boom of sports betting in Nevada. A further cut to the current amount came in 1984<\/strong>.<\/p>\n

The federal cut of sports wagers could have reached more than $10 million<\/strong> in 2017 if Nevada\u2019s handle reached $5 billion<\/strong>. That figure barely creates a ripple in the massive federal budget, but every drop of tax revenue will matter as states create sports betting legislation.<\/p>\n

Putting a few million dollars back into the pie could allow sportsbook operators to offer more competitive prices<\/strong>, especially in states with outsized taxes like Pennsylvania<\/strong>.<\/p>\n

The rest of what AGA wants from legislators<\/h2>\n

An AGA press release laid out five priorities<\/strong> for lawmakers:<\/p>\n