AGA will not back new bill on funding gambling-related harms research
Trade body opts against GRIT Act backed by North America’s National Council for Problem Gambling
The American Gaming Association (AGA) will not back the gambling addiction, recovery, investment, and treatment (GRIT) Act after federal lawmakers proposed a significant shift in the study of gambling-related harms.
The GRIT Act is supported by North America’s National Council for Problem Gambling and was introduced by Senator Richard Blumenthal and Representative Andrea Salinas last week.
As part of the act, should it pass, federal funds would be set aside from the existing federal sports betting excise tax for the treatment and research of gambling addiction.
Under the proposed measures, 50% of the federal sports excise tax revenue would be funnelled into treatment and research.
That would consist of 75% being put towards addiction prevention and treatment and the remaining 25% on research grants.
Keith Whyte, National Council on Problem Gambling executive director, said: “The GRIT Act will help address the critical and often overlooked issue of gambling addiction, and I am grateful for the leadership of Senator Blumenthal and Representative Salinas in introducing the bill.
“The investment into gambling addiction research, prevention, and treatment is a necessary step to minimize gambling-related harm nationwide and reduce its impact on countless American families.”
However, the AGA has said it will oppose the GRIT Act and instead educate Congress about the tax introduced in the 1950s, which is currently 0.25% of the handle or the amount wagered.
In a statement, AGA senior vice-president of government relations Chris Cylke said: “Congress enacted the federal sports betting excise tax in the 1950s as a tool to prosecute illegal gambling operations.
“Today, this antiquated policy puts the nascent legal market at a competitive disadvantage against offshore illegal operators, who do not pay any taxes and prey on vulnerable customers.
“Our industry’s growth means that there’s never been more attention paid to or money invested in problem gambling support than there is today. Nearly every tax dollar earmarked for problem gambling services comes from casino gaming taxes, including new legal sports betting and igaming markets,” he added.
The GRIT Act has since been sent to the House Committee on Energy and Commerce and Senate Committee on Health, Education, Labor, and Pensions respectively.