For the fourth time since the proliferation of sports wagering, Democratic Representative Dina Titus of Nevada and Republican Guy Reschenthaler of Pennsylvania, co-chairs of the bipartisan Congressional Gaming Caucus, introduced legislation Tuesday to repeal the 0.25% excise tax placed on all legal sports bets.

Known as the “handle tax,” it was enacted in 1951 to counter illegal gambling and Titus and Reschenthaler said the tax is no longer relevant today. The two introduced legislation to repeal the handle tax in 2019, 2021, and 2023, saying they recognize the economic importance of sports betting since its legalization in 2018.

Sports betting is legal and operational in 38 states and Washington, D.C.

“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.”

Titus said she once asked the IRS officials where the revenue from the handle tax went in the federal budget and they didn’t know.

“It makes no sense to give the illegal market an edge over legal sportsbooks with a tax the federal government doesn’t even track,” Titus said.

The U.S. gaming industry provides over one million jobs, including over 33,000 jobs in Pennsylvania, and generates more than $70 billion for state and local governments throughout the country, Reschenthaler said.

“Unfortunately, outdated tax codes and burdensome regulations penalize legal operators and incentivize illegal activity,” Reschenthaler said. “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. I urge our colleagues in the House to support this bipartisan legislation.”