Congressional Bill Seeks to Allocate Federal Funds For Gambling Addiction

Posted on: March 12, 2026, 09:24h. 

Last updated on: March 12, 2026, 09:25h.

Devin O'Connor @CasinoorgDevinO Read More
Expertise: Asia Pacific Gaming, Commercial Gaming, Legislation, Politics.
  • A federal bill would allocate funds to help with gambling addiction
  • The tax revenue would come from the US government’s excise tax on sports bets
  • The excise tax money currently goes to the General Fund

There’s little on Capitol Hill these days garnering bipartisan support. However, the notion that the federal government should do more to help problem gamblers is gaining Republican and Democratic backing.

excise tax problem gambling POINTS Act
An aerial view of the United States Capitol Building in December 2024 in Washington, DC. Federal legislation to designate a significant portion of the federal excise tax on sports bets to problem gambling programs has been introduced in Congress. (Image: Shutterstock)

The federal government imposes a 0.25% excise tax on every legal sports bet in the US. A $50 “head” tax on sportsbook employees is also collected by the US government.

The fees equate to about $400 million a year. Congress has conceded that it isn’t exactly clear where the money is spent. US Rep. Dina Titus (D-NV) said she asked IRS officials where the revenue from the handle tax went in the federal budget, but wasn’t given an answer. As a result, the money is held in the General Fund, aka America’s Checkbook.

The POINTS Act (Providing Opportunities for Individuals in Need of Treatment and Support) would change that by allocating at least one-third of the federal sports wagering excise tax to programs and initiatives supporting gambling addiction.

Bipartisan Gambling Bill 

The POINTS Act comes from four bipartisan lawmakers — Reps. Mariannette Miller-Meeks (R-IA), Erin Houchin (R-IN), Andrea Salinas (D-OR), and Troy Carter (D-LA).

The bill would establish a federal grant structure for programs that help states strengthen prevention, treatment, and recovery services for gambling disorders and addiction. The grants would first prioritize rural communities and high-risk populations, such as youth, men, veterans, and Native Americans.

As sports betting and online gambling continue to expand across the country, we have a responsibility to ensure people struggling with addiction are not left behind. Gambling addiction can devastate individuals and families, yet too many communities still lack the resources needed to provide prevention, treatment, and recovery support,” said Salinas.

March is Problem Gambling Awareness Month, the annual campaign put on by the National Council on Problem Gambling. The NCPG is helping champion the POINTS Act on Capitol Hill.

Despite the prevalence of gambling addiction in the United States, no federal agency is tasked with addressing it, and no federal funds are designated for treatment or research,” the NCPG said in a statement.

The NCPG estimates that nearly 20 million American adults (8%) experience at least one indicator of problematic gambling behavior “many times” each year.

$100 Million Benefit

If the POINTS Act becomes law, there would be an estimated $100 million set aside for problem gambling support each year by the federal government. With the federal excise tax on sports betting projected at more than $300 million this year, a one-third share would be approximately $100 million.

The funding would come with no new taxes and would mark the first time that federal law recognizes gambling addiction as a mental health disorder.