Senators Catherine Cortez Masto (D-NV) and Cindy Hyde-Smith (R-MS) have re-filed the bipartisan WAGER Act in Congress. The legislation aims to repeal the 0.25% excise tax on sports bets and eliminate the annual $50 fee imposed on each sportsbook employee.
WAGER Act Needed to Replace Outdated Tax Laws
Senator Cortez Masto emphasized that outdated federal laws are slowing down the growth of regulated sports betting.
“It’s past time to exempt legal sports betting from outdated taxes that are actually incentivizing illegal sportsbooks,” she said. Senator Cortez Masto added, “This is bipartisan, commonsense legislation that will help boost local economies across the United States.”
Meanwhile, Senator Hyde-Smith highlighted the tax burden on Mississippi casinos and its effect on tourism and competitiveness.
“Mississippi’s casinos and resorts play a key role in tourism, jobs and community investment along our Gulf Coast,” she said.
Senator Hyde-Smith continued, “For too long, this outdated federal tax on sports betting has held this industry back, all while giving illegal offshore operators, and now new out-of-state run prediction markets, an unfair edge against our more traditional casinos in Mississippi and elsewhere.”
Both senators argue the repeal will strengthen regulated markets, support workers, and provide fairer opportunities for legal online sportsbooks.
Current State of Sports Betting Taxation
Sports betting remains heavily taxed at the federal level, despite legalization spreading across more than 30 states. The 0.25% handle tax applies to every wager, regardless of whether bets are placed at casinos or online sportsbooks.
Additionally, operators must pay $50 per year for every sportsbook employee. Industry leaders say these taxes penalize legal operators.
Players are indirectly affected, as operators adjust lines and promotions to offset federal costs. Sportsbook employees also feel the pressure as compliance costs mount.
Representative Dina Titus (D-NV) has long opposed the tax structure. She introduced the FAIR BET Act earlier, which also seeks to repeal the federal sports betting excise tax.
Her efforts, combined with the WAGER Act, reflect growing bipartisan momentum to modernize sports betting laws.
If passed, the WAGER Act could remove one of the last federal hurdles holding back the regulated sports betting industry, ensuring licensed operators and online sportsbooks remain competitive.