OPINION – Bettors Won’t Notice If the Federal Excise Tax on Sports Betting Disappears

• Federal lawmakers have reintroduced the Discriminatory Gaming Tax Repeal Act of 2025, which focuse on taxing sportsbook operators.
• Representatives Dina Titus and Guy Reschenthaler believe the money owed by sportsbooks is giving offshore betting sites the edge.
• They also believe that sports bettors are choosing to use offshore sites because of this federal excise tax.

NEW YORK – A bipartisan group of lawmakers has once again introduced a bill to repeal the federal excise tax on sports betting. Their argument? It unfairly penalizes legal sportsbooks while failing to curb illegal gambling.

But let’s be real—this change, if it happens, won’t impact bettors at all.

The so-called handle tax is a 0.25% levy on every legal sports bet placed in the U.S. While sportsbooks would love to see it gone, the idea that this tax is pushing people to mobile betting sites is a stretch.

The vast majority of bettors choose where to place their wagers based on odds, sportsbook bonuses, and ease of access—not because of a hidden tax that operators, not players, are paying.

The Bottom Line

If anything, this repeal is about boosting sportsbook revenue and profit, not changing the betting experience.

The argument that eliminating the tax will suddenly make offshore books less appealing is weak. Offshore sportsbooks offer better odds, fewer restrictions, and more betting options—not because they avoid paying this tax, but because they operate outside U.S. regulations altogether.

Sure, repealing the tax might marginally increase operator revenue, but unless legal sportsbooks decide to pass those savings directly to bettors through better odds or reduced vig (which they won’t), this won’t change where people bet.

Whether the tax stays or goes, bettors will continue to prioritize where they get the best value for their money. At the end of the day, this is just another legislative battle that affects sportsbook bottom lines, not the people placing bets.

From The Operator Viewpoint

The Discriminatory Gaming Tax Repeal Act of 2025 aims to eliminate the federal excise tax on legal sports betting. Originally enacted in 1951 to combat illegal gambling, the tax is now seen as outdated and counterproductive. The bill, reintroduced by Representatives Dina Titus (D-NV) and Guy Reschenthaler (R-PA), also seeks to remove the $50-per-head tax on sportsbook employees.

Supporters of the repeal highlight the gaming industry’s economic contributions, including over one million jobs and $70 billion in state and local tax revenue. (For reference sport betting taxes have totaled somewhere around $15 billion since 2018)

Regardless, believing that lifting these outdated taxes would allow legal sportsbooks to reinvest in their operations and make it better for the individual bettor remains to be seen.

News tags: Dina Titus | Discriminatory Gaming Tax Repeal Act of 2025 | Guy Reschenthaler | Handle Tax