Official Summaries

Discriminatory Gaming Tax Repeal Act of 2025

This bill repeals the excise tax imposed on wagers (also known as the handle tax) and the occupational tax imposed on businesses receiving taxable wagers.

As background, an excise tax on wagers is imposed on businesses that accept wagers, persons conducting a wagering pool or lottery, and certain persons accepting wagers on behalf of another person. Under current law, the amount of the excise tax is (1) 0.25% of the amount wagered (also known as the handle) for wagers authorized by the state, or (2) 2% of the amount wagered for wagers not authorized by the state. (Some exceptions apply.)

Further, under current law, an annual occupational tax is imposed in the amount of (1) $50 for persons in the business of accepting taxable wagers (or persons accepting taxable wagers on such persons’ behalf) in a state where the wagers are authorized, or (2) $500 for such persons in states where the wagers are not authorized. (Some exceptions apply.)

Current Full Text

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1440 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 1440

 To amend the Internal Revenue Code of 1986 to repeal the excise taxes 
                              on wagering.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 18, 2025

 Ms. Titus (for herself, Mr. Reschenthaler, Mr. Kelly of Pennsylvania, 
Mr. Horsford, and Mr. Amodei of Nevada) introduced the following bill; 
         which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to repeal the excise taxes 
                              on wagering.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Discriminatory Gaming Tax Repeal Act 
of 2025''.

SEC. 2. REPEAL OF EXCISE TAXES ON WAGERING.

    (a) In General.--Chapter 35 of the Internal Revenue Code of 1986 
(relating to taxes on wagering) is repealed.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2024.
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