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Dear _____: I write on behalf of the (Tribe/Nation) to ask that you co-sponsor H.R. 2350, the “Discriminatory Gaming Tax Repeal Act of 2021”. Rep. Dina Titus and Rep. Guy Reschenthaler introduced H.R. 2350, which would repeal Chapter 35 subtitle D of the Internal Revenue Code. Congress enacted I.R.C. Chapter 35 subtitle D, commonly known as the wagering excise tax, in 1951 to target organized crime and to deter gambling. The tax was never intended to be a revenue source, but a tool for prosecuting illegal gambling operations. Over the past 70 years, the law has been amended and updated to exempt wagers on horse and dog racing and state-operated lotteries. The law currently imposes a federal excise tax of 0.25% on the amount of any legal sports wager, as well as an additional $50 annual tax for every employee engaged in receiving wagers for or on behalf of any legal sports betting operator. In light of the U.S. Supreme Court’s 2018 decision in Murphy v. NCAA , striking down as unconstitutional the federal ban on sports betting, the tax currently serves no dedicated purpose. As it stands today, the wagering excise tax imposes increased operating cost on legal sports betting operations regulated by dozens of Tribal Governments and at least thirty (30) state governments, which in turn only serves to benefit illegal unregulated sports betting operators. Illegal unregulated gambling remains prevalent in the United States with more than $150 million placed on illegal sports wagers annually. To ensure that tax policy established seven decades ago to curb illegal sports betting does not benefit the illicit operations, we urge you to consider co-sponsoring H.R. 2350 to repeal the outdated wagering excise tax.
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Sincerely,
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