Withdrawing Arduous Gaming Excise Rates Act; WAGER Act
Summary
The "Withdrawing Arduous Gaming Excise Rates Act" (WAGER Act) aims to amend the Internal Revenue Code of 1986 by exempting sports betting from the excise tax on authorized wagers. This exemption applies to sports betting that is not prohibited under state law or tribal compacts. The bill was introduced in the Senate and referred to the Committee on Finance.
Expected Effects
If enacted, the WAGER Act would reduce the tax burden on sports betting activities. This could lead to increased participation in legal sports betting markets. It may also shift revenue streams for both states and tribal entities.
Potential Benefits
- Potentially increased revenue for states and tribal entities through increased sports betting activity.
- Reduced tax burden on individuals and businesses involved in sports betting.
- Simplification of the tax code by removing excise taxes on specific types of wagers.
- May encourage a shift from illegal to legal sports betting markets.
- Could stimulate economic activity within the sports betting industry.
Most Benefited Areas:
Potential Disadvantages
- Potential decrease in federal tax revenue due to the exemption.
- Possible increase in problem gambling if sports betting becomes more accessible.
- Risk of insufficient regulation at the state or tribal level, leading to potential exploitation.
- May create an uneven playing field if some states or tribes have more favorable sports betting regulations than others.
- Potential for increased money laundering or other illicit activities related to sports betting.
Most Disadvantaged Areas:
Constitutional Alignment
The bill aligns with the Constitution as it pertains to the power of Congress to levy taxes (Article I, Section 8). The Tenth Amendment reserves powers not delegated to the federal government to the states, allowing states to regulate or permit sports betting. The Indian Gaming Regulatory Act provides a framework for tribal-state gaming compacts, which this bill references.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).