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One of the biggest challenges for operators and vendors in the US gambling market is the lack of funding for a national safety net. This means that the availability of problem gambling prevention and treatment services varies greatly across American jurisdictions, including in many where there is little or no public funding for such programs at all. In order to bolster often scarce state funding and provide the only funding in some states, in March NCPG is continuing to push for the first-ever Federal legislation to provide national funding to tackle gambling addiction.
Federal support is particularly appropriate as there are two Federal taxes on gambling that combined are likely to bring in more than $7 billion in tax revenue to the Federal government last year alone. Currently not a penny of that gambling tax revenue goes back to help states address problem gambling issues.
On January 11, 2024, the GRIT Act was introduced in both chambers of Congress. The GRIT Act utilizes 50% of the revenue from the federal excise tax on sports wagers to establish a dedicated funding stream for gambling addiction treatment and research. The proposed allocation plan is both strategic and comprehensive. Three-quarters of the funds would be distributed to states for gambling addiction treatment and prevention initiatives through the Substance Abuse Prevention and Treatment Block Grant program. The remaining one-quarter would go to the National Institute on Drug Abuse (NIDA) to fund gambling-related research. This two-pronged approach aims to provide immediate support to those in need while simultaneously advancing what is known about gambling addiction through research.
The GRIT Act represents a landmark opportunity to address gambling addiction comprehensively. It acknowledges the challenges faced by state health agencies and nonprofits in addressing gambling problems and emphasizes the federal government’s duty to minimize gambling-related harm as it utilizes gambling as a source of income. It provides concrete steps to help prevent public backlash in the face of the unprecedented speed and scale of gambling expansion.
March is Problem Gambling Awareness Month, a great opportunity for everyone in the gambling industry to support efforts to minimize gambling-related harm such as the GRIT Act. For more information on the GRIT Act go to: www.gritact.org
For more information, download the ebook, Responsible Gaming: Get Ahead of the Game
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