Nevada Lawmaker Wants to Remove Old Tax on Legal Sports Books

The tax was created in the 1950s as a way for the government to take severe measures against black market betting. However, Congresswoman Dina Titus says that the tax is outdated and that’s not what’s happening.

“We have tried to get the IRS and accounting of this and they just don't have any information,” said Titus, who sent a letter to Congressional leadership on the issue. “I say let’s get rid of the handles tax.”

Some estimates say black market gambling generates somewhere around USD 150 B nationwide. The question remains: what happened to the crackdown? And where does the tax money go?

Attorney Kevin Braig of Shumaker, Loop & Kendrick, LLP, said: “sports betting is now a legitimate business that’s run by very reputable companies and to continue to have this tax just doesn’t make sense.”

In six months, the United States Supreme Court will hand down a decision on a case that could open the floodgates allowing sports betting across the country. If that happens, Titus said Congress must take a serious look at what she called an outdated tax.

“This is about $10 million a year and it comes almost completely from Nevada companies. I think we could use that $10 million in the state for other purposes,” said Titus.