A legislative struggle over the taxes sportsbooks pay to the federal government is gaining steam. At stake are the lives of tens of millions with problem gambling or an at-risk relationship with gambling, along with their friends and family.
On March 10, a bipartisan group of lawmakers announced the filing of the POINTS Act, which would redirect a third of this money to fund gambling addiction treatment and related services. The federal government has never dedicated funding specifically to gambling addiction.
Bill sponsors said it would generate at least $100 million annually. Each year, the U.S. sports betting industry must pay a federal 0.25% handle tax and a $50 per-employee “head” tax.
In 2025, the industry took $166.94 billion in state-sanctioned bets. A quarter percentage point of that figure is more than $400 million for that year.
POINTS Act a New Vehicle?
The POINTS Act is similar to the GRIT Act, which was reintroduced in 2025. The latter calls for 50% of the federal betting tax to be used for addiction, above the POINTS Act’s 33%.
Keith Whyte, former executive director of the National Council on Problem Gambling, told GamblingHarm.org that the POINTS Act has the advantage of bipartisan support and includes tribal governments, many of which operate gambling.
As of March 2026, it appears the POINTS Act is now the vehicle with the best odds of creating a federal funding stream to address a growing gambling crisis in the U.S., fueled by various kinds of betting platforms.
Rep. Andrea Salinas (D-OR) is a sponsor of both bills.
“Gambling addiction can devastate individuals and families, yet too many communities still lack the resources needed to provide prevention, treatment, and recovery support,” Salinas said. “The POINTS Act helps close that gap by investing existing gambling excise tax revenue into programs that expand care, raise awareness, and connect people to the help they need.”
Cynical Legislation
The U.S. gambling industry, which took in nearly $17 billion in revenue from state-sanctioned sports bets in 2025, has sought repeal of the federal excise tax, instead of repurposing it for addiction-related measures.
The WAGER Act, reintroduced in 2025, seeks to abolish these federal taxes that sports betting operators pay. Operators also pay state taxes, which help fund a patchwork of state-level addiction services.
Critics of the gambling addiction funding status quo say that some states don’t do nearly enough.
Another proposal, the GAMBLER Act, introduced in 2025, would have rerouted the federal betting tax to further fund Immigration and Customs Enforcement (ICE) operations.
These bills are in direct opposition to the POINTS Act.
No Votes, More Problems
As of March 2026, none of these bills has been voted on in Congress.
The SAFE Bet Act, another federal bill for addressing betting addiction, doesn’t involve taxes but calls for uniform player protections. It has also so far stalled on Capitol Hill.
Meanwhile, public perceptions of state-sanctioned sports betting remain in flux. In late 2025, the Pew Research Center reported that 43% of Americans regarded legal betting as “bad for society,” up from 34% three years earlier. Among men under 30, the most frequent online bettors, 47% expressed this negative view, up from 22% in 2022.
Provisions in the POINTS Act could begin to stem the declining public opinion.
Recent surveys show that half of online sports bettors chase losses, a core sign of a potential gambling problem. One study found that nearly 20% of online bettors could meet the level of an addiction.
The rise of sports bets via prediction markets in 2025 has complicated the fight over addiction funding. Federally-regulated prediction markets do not pay state or federal taxes in the way traditional sports betting apps do.
The American Gaming Association, which represents the commercial gambling industry, claims the sector is under siege from prediction markets. This could strengthen its opposition to the federal tax and a proposal like the POINTS Act.
