AGA's CEO calls on US Congress to repeal federal excise tax on sports wagers

American Gaming Association (AGA) President and CEO Bill Miller testified Wednesday before the U.S. Senate Judiciary Committee at a hearing on "Protecting the Integrity of College Athletics," focused on how the legal, regulated sports betting market ensures game and wager integrity, protects collegiate and professional athletes, and helps detect suspicious wagering and unlawful activity.

“The protection of the integrity of competition is central to the interests of the entire sports betting ecosystem,” testified Miller. “The federal prohibition on sports betting was a failed endeavor that we shouldn’t replicate. Instead, we should work together to further eliminate the pervasive illegal market, and support experienced regulators whose oversight protects the interests and integrity of all involved.”

In his testimony, Miller reiterated that the only way to protect athletes and competition from corruption is through continued legalization. “Nobody has a greater vested interest in avoiding scandal than legal gaming operators. In fact, licensed sportsbooks in Nevada have historically been the first to uncover match fixing, identifying irregular betting patterns and alerting regulators,” he said.

Miller encouraged Congress to consider increasing the maximum federal penalty for match-fixing and repeal the federal excise tax on sports wagers, which puts legal sportsbooks at a competitive disadvantage.

In a personal note to the gaming industry, Miller wrote that he focused on “the failure of the 25-year federal prohibition on sports betting (PASPA); the dangers of the pervasive and predatory illegal market; and the protections for the entire system that only exist within legal, regulated markets. Americans have a longstanding interest in sports betting that predates the Supreme Court’s invalidation of PASPA, and I used today’s hearing to reinforce the responsibility that everyone involved in the sports betting ecosystem shares to continue to get this right.”

“Importantly, I impressed upon the committee that sports betting regulation should continue to be led by the more than 4,000 experienced state and tribal regulators nationwide. The federal government can be a strong partner in combatting the illegal market and leveling the playing field for operators playing by the rules,” Miller added.

According to AGA research, 74 percent of American sports bettors say it is important to only bet through legal providers. Since the Supreme Court declared the Professional and Amateur Sports Protection Act unconstitutional in May 2018, 22 states and the District of Columbia have authorized sports betting.