Cortez Masto, Hyde-Smith Introduce Bipartisan Bill to Boost Local Sports Tourism and Gaming Economy

Washington, D.C. - U.S. Senators Catherine Cortez Masto (D-Nev.) and Cindy Hyde-Smith (R-Miss.) introduced the Withdrawing Arduous Gaming Excise Rates (WAGER) Act, bipartisan legislation to protect legal sportsbooks and gaming businesses and help states like Nevada and Tribal communities reinvest their gaming revenues into their local economies. Specifically, the bipartisan WAGER Act would exempt legal sports betting from outdated "handle" and "head" taxes. In January 2023 alone, Nevada generated a total revenue of $50.44 million from regulated sports betting.

"Nevada is home to multiple championship-level sports teams, and we know better than anyone that responsible, legal sports betting can be a great revenue source for our local economy," said Senator Cortez Masto. "My bipartisan legislation will ensure our sports gaming industry can provide essential tax relief to consumers and our sports gaming industry, creating more jobs and keeping our tax money in the state while cracking down on illegal activities."

"Mississippi has a strong tourism industry thanks, in part, to our beautiful casinos and resorts that make valuable contributions to local communities. They could do more if not for this outdated federal excise tax on sports betting that only benefits illegal offshore operations which provide zero jobs or tax revenue," saidSenatorHyde-Smith said. "By repealing this tax, our bipartisan WAGER Act will level the playing field, boost local economies, and ensure that gaming revenues stay here, supporting jobs and community investments."

"The federal sports betting excise tax was enacted more than 70 years ago as a tool to prosecute illegal sports betting operators. Today, with sports betting legal in 38 states and Washington, D.C., this antiquated tax puts legal operators at a competitive disadvantage and rewards illegal offshore bookmakers that pay no federal or state taxes, offer no responsible gaming tools, and have no systems in place to prevent underage customers from using their platforms," said Bill Miller, President and CEO of the American Gaming Association (AGA). "The AGA is grateful to Senators Cortez Masto and Hyde-Smith for their commitment to providing a safe, responsible sports betting market and to continuing to help migrate bettors out of the illegal market, which is bereft of consumer protections and a haven for bad actors and tax evaders. The AGA will continue to work with policymakers to enact legislation to address this harmful tax."

Established in 1951 to suppress illegal gambling, the Internal Revenue Code (IRC) imposes a federal excise "handle" tax of 0.25% on all legal sports bets, as well as a $50 annual "head" tax per employee for legal sports betting businesses. This outdated tax punishes legal operations while incentivizing illegal sportsbooks, as they can operate more cheaply and often offer better odds. Nevada paid nearly $22 million in handle taxes in 2022, nearly double the state's total from 2019. Specifically, the WAGER Act exempts legal sports betting from this harmful tax while maintaining laws to continue to crack down on illegal activities. Similar companion bipartisan legislation has been introduced in the U.S. House of Representatives by Representatives Dina Titus (D-Nev.-01) and Guy Reschenthaler (R-Pa.-14).

You can read the full bill text HERE.

Senator Cortez Masto is a champion of Nevada's tourism and gaming economy. In the American Rescue Plan, Senator Cortez Masto secured $3 billion in funding to assist states with their economic recovery and their vital tourism industries, including Nevada. She also delivered resources to the state's businesses and secured flexibility for the gaming industry. She has been a Senate leader in passing the seven-year reauthorization of 'Brand USA', which is a public-private partnership that enhances tourism and job creation across the country.

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