It was recently revealed that Underdog Sports has officially become the 1st sports wagering operator to back up the federal Gambling addiction Recovery, Investment and Treatment (GRIT) Act. In addition, this legislation would take about half of the federal excise tax on sports wagering and direct it to responsible and problem gambling strategies.
The first gambling firm to support the GRIT Act:
The aforementioned operator, whose intentions are to debut its 1st “attack” into sports wagering in North Carolina in March, thinks that it the 1st firm to officially back up the aforementioned bill. Relatedly, legislation was formally presented during January by Rep. Andrea Salinas (D-Oregon) and U.S. Sen. Richard Blumenthal (D-Connecticut), and urges for the distribution of half of 1Q of 1 percent taxon handle to help to stop problem gambling.
Commenting on the company’s support for the legislation, Vice President of Responsible Gaming for Underdog Sports, Adam Warrington, commented in a statement to Sports Handle: “There is a need for dedicated federal resources to aid problem gambling prevention, research, and treatment. The GRIT Act would direct existing tax dollars paid by legal operators to be utilized to fill the current funding gap. As there are currently no federal funds allocated for problem gambling, we at Underdog support directing existing tax dollars as online sports gaming and wagering grows in the United States.”
Opponents of the bill:
However, not everyone is thrilled when it comes to legislation!
In this sense, Nevada Rep. Dina Titus is in favor of complete abolition of the excise tax. Commenting on this, she commented that she was “blindsided” by the initiation of the aforementioned GRIT bill.
In addition to that, the said bill also managed to create a division within the industry. In this regard, the American Gaming Association (AGA), a representative of the large number of sportsbooks, has said that it is against the bill, while the National Council on Problem Gambling supports the legislation.
Furthermore, the proposed bill earmarks 75% of its funds to go back to states in order to implement responsible and problem gambling programs. As for the remaining 25%, it will fund federal gambling addiction research.
Beside that, it officially mandates that starting from its effective date, during a period of 3 years, the Secretary of Health and Human Services, have to file the official report to Congress in which it evaluates how effective the implemented programs have been. Also, if the legislation is validated, it will stay in force for the time frame of 10 years.