A bipartisan bill is pushing for federal funding to address gambling addiction in the US. Representatives Dan Goldman (D-NY) and Blake Moore (R-UT) have introduced the Gambling Disorder Health Study Act, which aims to allocate funding from the federal sports excise tax to examine and combat the consequences of gambling addiction. The legislation proposes a broad investigation into the addiction’s causes and long-term effects, with the first three years of funding drawn from the existing tax on sports bets.
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Funding Through Sports Betting Tax
The US currently levies a 0.25% excise tax on legal sports bets and an additional $50 per sportsbook employee, commonly referred to as the “head” tax. Historically, these funds—amounting to roughly $400 million annually—have flowed into the General Fund without earmarking for specific causes. Goldman and Moore suggest redirecting a portion of this revenue to directly address the burgeoning public health crisis of gambling addiction, which they argue has been exacerbated by the availability of 24/7 gambling apps. “We’re facing a new era of gambling addiction,” Moore stated, emphasizing the widespread influence of sports betting and the need for thorough research to craft effective responses. The lawmakers aren’t the first to push for such a reallocation; the POINTS Act from March proposed a similar use of excise tax revenue, but it stalled in the House Energy and Commerce Committee.
Escalating Gambling Revenue Trends
Gambling activity in the US has surged, particularly since the Supreme Court’s 2018 decision empowering states to legalize sports betting. Gross gaming revenue (GGR) soared to $78.72 billion in 2025, marking a 9.2% rise over the previous year. This figure represents revenues from casinos, sports betting, and iGaming but excludes lotteries and other gambling forms like tribal gaming. The industry’s growth has been partly driven by the mainstream appeal of sports betting, which continues to draw millions of new participants annually. Back in 2003, commercial GGR was under $29 billion, showing the dramatic growth of the US gambling sector over two decades. Analysts have noted this rapid expansion, linking it to increased accessibility and acceptance of betting as a mainstream entertainment option.
Regulatory and Market Uncertainties
Despite these developments, the measure’s passage is uncertain. Previous attempts to earmark sports betting taxes for research—like the POINTS Act—languish without progress. Some industry watchers caution that without bipartisan support and clear policy backing, similar initiatives face an uphill battle in Congress. And yet, with gambling revenues at an all-time high, there’s renewed focus on understanding and mitigating addiction risks. Meanwhile, the gambling industry continues to monitor regulatory changes closely. Any shift in tax allocation could impact operators already navigating a complex market of state-by-state regulation and competition. The true test will be whether lawmakers can align on a solution that balances public health priorities with the sector’s rapid growth. The House Energy and Commerce Committee is expected to further review the bill later this year. The outcome could influence how gambling addiction is addressed at a federal level, shaping future policy and funding strategies.
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