As Football Season Begins, 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 Specifically, the bipartisan WAGER Act would exempt legal sports betting from outdated "handle" and "head" taxes.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.

"In Nevada, legal sports betting is thriving industry that adds to the world-class experience of watching our championship-level professional sports teams," said Senator Cortez Masto. "It's past time to exempt legal sports betting from outdated taxes that are actually incentivizing illegal sportsbooks. This is bipartisan, commonsense legislation that will help boost local economies across the United States."

"Mississippi's casinos and resorts play a key role in tourism, jobs, and community investment along our Gulf Coast. For too long, this outdated federal tax on sports betting has held this industry back, all while giving illegal offshore operators, and now new out-of-state run prediction markets, an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. I've long pushed to eliminate this tax so we can modernize the system, strengthen our local economies and tax base, and ensure gaming revenues support Mississippi interests," Senator Hyde-Smith said.

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 This outdated tax punishes legal operations while incentivizing illegal sportsbooks, as they can operate more cheaply and often offer better odds.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).

Read the full bill here.

Senator Cortez Masto is a champion of Nevada's tourism and gaming economy. Following the passage of the Republican tax law, which imposed greater taxes on gamblers, Cortez Masto introduced the FULL HOUSE Act to restore the 100% tax deduction on gambling losses. 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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