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U.S. bipartisan lawmakers introduce new bill to allocate gambling taxes for addiction treatment.

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A bipartisan group of House members recently proposed legislation aimed at using a portion of federal gambling tax revenue for the prevention and treatment of gambling addiction. The bill, named the Providing Opportunities for Necessary Treatment and Support Act (POINTS Act), plans to allocate funds from the federal excise tax on sports betting to fund state and tribal projects for gambling addiction and recovery services. In plain terms, it means that the taxes paid by casinos will specifically be set aside to treat "gambling addiction." Want to keep up with the latest developments in U.S. federal gambling policy? Follow the PASA website continuously.

Funding uses: Training, hotlines, treatment all covered

The bill is co-sponsored by Republican Representative Erin Houchin from Indiana and Democratic Representative Andrea Salinas from Oregon, among other bipartisan members. Eligible uses of the funds include workforce training, prevention advocacy activities, peer support groups, 24/7 helplines, and specialized treatment programs. The bill does not establish new taxes but reallocates a portion of the existing federal sports betting excise tax, which currently goes directly to the Treasury. This move is intended to earmark funds specifically, without increasing federal spending, but may trigger budget allocation controversies. The sponsors estimate that the legislation will generate about $100 million annually.

Beneficiary groups: Priority services for Native Americans, military personnel, and other high-risk groups

The grants will use a competitive selection process, prioritizing applicants who serve populations disproportionately affected by gambling issues, specifically mentioning men, youth, Native Americans, military personnel, and veterans. Priority consideration will be given to services integrated into primary care facilities, in collaboration with community organizations, or operating in rural or other health professional shortage areas. Beneficiaries must commit to increasing service accessibility, and the Assistant Secretary must submit annual effectiveness reports to the relevant congressional committees starting December 29, 2027.

National context: Expansion of gambling forces attention to addiction issues

The bipartisan nature of the bill reflects a thoughtful response to the rapid expansion of legal sports betting and online gambling in the U.S. following the Supreme Court's 2018 decision allowing states to regulate sports betting. The Problem Gambling Commission and various state mental health organizations have publicly supported the bill, citing studies estimating that up to 20 million Americans show signs of problem gambling, with the social costs of gambling-related harms amounting to billions of dollars annually. The bill has been submitted and must be reviewed by committees, passed by both houses, and signed by the president to become law.

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