Sports betting could get a lot more expensive! A new Bipartisan Policy Center brief (https://bit.ly/4vbsKbT ) outlines how lawmakers might increase the federal excise tax on sports betting, which has exploded in popularity since a 2018 Supreme Court ruling allowed states to legalize it. An excise tax increase from 0.25% to 5% could raise close to $100 billion in revenue over 10 years. However, there are potential risks, such as driving bettors to illegal gambling markets and undercutting state gambling revenues. The report also addresses a recent surge in participation in prediction markets and recommends that Congress clarify their income and excise tax implications.
