Published on: March 12, 2026, at 09:24 AM.
Updated on: March 12, 2026, at 09:25 AM.
- A proposed federal bill aims to provide funding for gambling addiction recovery
- Tax revenue will be sourced from the federal excise tax on sports betting
- Currently, excise tax proceeds are deposited into the General Fund
Amidst limited bipartisan consensus in Congress, the initiative for the federal government to enhance support for individuals dealing with gambling issues is cultivating backing from both sides of the aisle.
The federal government currently imposes a 0.25% excise tax on all legal sports bets across the United States, along with a $50 head tax on employees of sportsbooks.
These fees generate approximately $400 million annually. Congress has admitted uncertainty regarding the allocation of these funds. Rep. Dina Titus (D-NV) noted that when she inquired about the distribution of the handle tax revenue with IRS officials, no clear response was provided. Consequently, these funds remain in the General Fund, often referred to as America’s Checkbook.
The POINTS Act (Providing Opportunities for Individuals in Need of Treatment and Support) proposes to change this by directing at least one-third of the federal sports wagering excise tax towards programs dedicated to addressing gambling addiction.
Bipartisan Gambling Legislation
The POINTS Act has been introduced by four bipartisan lawmakers — Reps. Mariannette Miller-Meeks (R-IA), Erin Houchin (R-IN), Andrea Salinas (D-OR), and Troy Carter (D-LA).
This legislation aims to create a federal grant system designed to assist states in enhancing prevention, treatment, and recovery services for gambling disorders. Priority for these grants would be given to rural areas and high-risk demographics, including youth, men, veterans, and Native Americans.
“As sports betting and online gambling continue to grow nationally, we must ensure that individuals battling addiction receive the support they need,” stated Salinas. “Gambling addiction can have devastating effects on individuals and families, yet many communities still lack the essential resources for prevention, treatment, and recovery.”
March marks Problem Gambling Awareness Month, an initiative led by the National Council on Problem Gambling (NCPG). The NCPG is advocating for the POINTS Act on Capitol Hill.
“Despite the widespread occurrence of gambling addiction in the United States, there is currently no federal agency dedicated to addressing this issue, nor are there federal funds set aside for treatment or research,” stated the NCPG.
The NCPG estimates that nearly 20 million American adults (8%) exhibit at least one sign of problematic gambling behavior multiple times each year.
Projected $100 Million Support
If the POINTS Act is enacted, it is expected that approximately $100 million would be allocated each year for supporting gambling addiction programs. With the federal excise tax from sports betting anticipated to exceed $300 million this year, one-third of that would yield around $100 million.
This funding would not impose any new taxes and would represent a significant milestone as the first instance of federal law acknowledging gambling addiction as a mental health disorder.