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U.S. Rep. Guy Reschenthaler (R-PA), chief deputy whip, recently reintroduced legislation in the U.S. House of Representatives that would repeal the handle tax, a 0.25 percent excise tax placed on legal sports bets.
The Discriminatory Gaming Tax Repeal Act of 2025 (H.R. 1440), cosponsored by U.S. Rep. Mike Kelly (R-PA), would repeal Chapter 35 of the Internal Revenue Code of 1986. If the bill becomes law, it would apply starting with taxable year 2025.
“The U.S. gaming industry provides over 1 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 “Unfortunately, outdated tax codes and burdensome regulations penalize legal operators and incentivize illegal activity. 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.”
U.S. Rep. Dina Titus (D-NV) co-introduced the bill. Reschenthaler and Titus are Congressional Gaming Caucus co-chairs. The caucus discusses policy issues related to the U.S. gaming industry and educates colleagues on regulatory and legislative matters.
In 2023, Pennsylvania generated $5.86 billion in gaming revenue, second in the United States, and received $2.3 billion in direct gaming tax revenue, more than any other state.