Quick Summary
- The bipartisan POINTS Act aims to allocate one-third of current federal sports betting excise taxes to address problem gambling.
- If passed, the Act would establish the first dedicated federal funding—estimated at $100 million annually—for gambling addiction prevention and treatment in the US.
- The National Council on Problem Gambling (NCPG) has strongly endorsed the bill.
- Nearly 20 million Americans reported frequent problematic gambling behavior in the past year, according to NCPG data.
What Happened
On June 11, 2024, the National Council on Problem Gambling (NCPG) formally endorsed the introduction of the Promoting Responsible Oversight & Targeted Interventions for Sports Betting (POINTS) Act. This bipartisan legislative proposal seeks to earmark approximately one-third of the federal excise tax already collected on sports wagering for combating problem gambling nationwide, without increasing the existing tax rate.
The measure, if adopted, would generate an estimated $100 million per year dedicated to research, prevention, and treatment of gambling addiction—resources that do not currently exist at the federal level. This marks the first significant proposal to directly fund responsible gambling initiatives with federal dollars since the expansion of legal sports betting began in the United States following the Supreme Court’s 2018 PASPA decision.
Why It Matters
The POINTS Act represents a watershed moment for US gambling policy, which historically has left funding for addiction treatment almost entirely to states—leading to significant disparities in protection and support for at-risk individuals. Despite the exponential market growth, with legal US sports betting wagers expected to exceed $100 billion annually in the near future, national infrastructure for problem gambling lags far behind that of other forms of addiction.
Recent NCPG data underscore the urgency: nearly 20 million Americans—roughly 7% of all US adults—reported experiencing frequent indicators of problematic gambling behavior over the past year. Industry stakeholders and public health experts agree that the current patchwork approach to responsible gambling has failed to meet these risks, particularly as sports betting marketing and accessibility have soared since 2018.
Redirecting existing revenue from the federal sports betting excise tax—not raising rates or imposing new levies—positions the POINTS Act to avoid the political friction often associated with “sin tax” increases. This approach may garner bipartisan appeal, especially as increasing attention is paid to the social costs of gambling expansion in high-profile state markets such as New York, New Jersey, and Ohio.
Moreover, the proposed $100 million annual figure is significant by international standards. In the UK, for example, GambleAware’s annual income from voluntary industry donations totaled £46.5 million ($59 million USD) for 2022/23; Australia’s nationwide public and private funding for gambling harm is even lower on a per-capita basis. The POINTS Act would instantly propel the US to the forefront of state-sponsored gambling harm prevention, with multi-year implications for research, technology deployment, and frontline clinical service.
Industry Context
Industry reaction has, to date, focused on the balance between market freedom and the need for a sustainable, socially responsible market. Major US sportsbook operators—some of which have entered voluntary partnerships to promote responsible gambling messaging—are under increased scrutiny for aggressive marketing and new player acquisition tactics. State regulators, led by the Massachusetts Gaming Commission and New Jersey Division of Gaming Enforcement, have already increased oversight of advertising standards and self-exclusion programs, but the lack of federal leadership has limited the uniformity and reach of these interventions.
At a time when the global iGaming industry is facing tightening compliance environments—most recently in Ontario, the Netherlands, and the UK—US policymakers are taking their first steps toward matching their commitment to regulatory best practice. Analysts point out that, given the enormous revenues at stake, more coordinated federal action could spur operators to enhance self-regulation and proactively fund harm prevention initiatives beyond statutory minimums.
Regulatory Background
The federal excise tax on sports betting, established in 1951 and long considered an anachronism, currently collects 0.25% of handle from licensed operators, raising between $300 million and $400 million annually. Unlike tobacco or alcohol excise taxes, federal gambling tax revenue has not been specifically directed to addressing gambling-related harm. Most states with legal gambling instead fund responsible gambling initiatives through license fees and earmarked wagers.
Since the Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA) in 2018, more than 35 states have legalized sports betting in some form, rapidly expanding access to gambling. Yet, national funding and infrastructure for prevention, research, and treatment of gambling harm have not kept pace with market growth—leaving the US out of line with public health approaches common in Canada, Europe, and Australia.
What Happens Next
The POINTS Act will now proceed to committee stage in Congress, with its progress likely shaped by bipartisan support for public health initiatives and heightened scrutiny of commercial gambling expansion. If enacted, federal agencies would be tasked with distributing and overseeing the new pool of funding, in coordination with state and local organizations working directly with affected populations.
Sources
This article is for informational purposes only. 31Casino does not provide gambling services or recommendations. If you're concerned about your gambling, visit our Responsible Gambling page for support resources.