U.S. Reps. Guy Reschenthaler (R-PA) and Dina Titus (D-NV) introduced legislation that would repeal the 0.25 percent excise tax placed on all legal sports bets, known as the “handle tax.”
“The U.S. gaming industry provides over one million jobs, including over 33,000 jobs in Pennsylvania, and generates more than 70 billion dollars for state and local governments throughout the country,” Reschenthaler said. “Unfortunately, outdated tax codes and burdensome regulations penalize legal operators and incentivize illegal activity. The Discriminatory Gaming Tax Repeal Act of 2025 will ensure the gaming industry can support good-paying jobs and promote economic growth in southwestern Pennsylvania and across the nation.”
Pennsylvania ranks second in the U.S. for total gaming revenue generated, grossing $5.86 billion in 2023. The state also brought in $2.3 billion in direct gaming tax revenue in 2023 – the most in the nation.
“The Discriminatory Gaming Tax Repeal Act of 2025 repeals a tax that does nothing except penalize legal gaming operators for creating thousands of jobs in Nevada and 37 other states around the nation,” Titus said. “Illegal sportsbooks do not pay the .25% sports handle tax and the accompanying $50 per head tax on sportsbook employees, giving them an unfair advantage. I once asked the IRS where the revenue from the handle tax went in the federal budget, and they didn’t even know. It makes no sense to give the illegal market an edge over legal sports books with a tax the federal government does not even track.”
The two lawmakers are co-chairs of the bipartisan Congressional Gaming Caucus, which is comprised of more than 20 members of Congress from across the country. It serves as a platform to discuss federal policy issues related to the U.S. gaming industry and educate congressional colleagues on related regulatory and legislative matters.