S 2773119th CongressIntroduced

WAGER Act

Introduced: Sep 11, 2025

Economy & TaxesFinancial Services

Standard Summary

Comprehensive overview in 1-2 paragraphs

The WAGER Act would amend the Internal Revenue Code to exempt sports betting from the federal excise tax on authorized wagers. It adds a new condition to allow the exemption only for wagers that are not prohibited under the state where the wager is accepted or under an approved Tribal-State gaming compact under the Indian Gaming Regulatory Act. The exemption would apply to wagers placed on any sporting event, and only for wagers placed after the enactment date (no retroactive effect). The act is titled the “Withdrawing Arduous Gaming Excise Rates Act” or the “WAGER Act.” The bill was introduced in the Senate by Senator Cortez Masto (with Senator Hyde-Smith) and referred to the Committee on Finance.

Key Points

1Exemption from tax: Adds a new paragraph to Section 4402 of the Internal Revenue Code to exempt sports betting from the federal excise tax on authorized wagers.
2Eligibility condition: The exemption applies only to wagers not prohibited by the law of the state where accepted or by an approved Tribal-State gaming compact under the Indian Gaming Regulatory Act.
3Scope of wagers: Applies to wagers placed with respect to any sporting event.
4Effective date: The exemption applies to wagers placed after the enactment of the bill (no retroactive effect).
5Title and sponsorship: Official short title is the WAGER Act (also referred to as the Withdrawing Arduous Gaming Excise Rates Act); introduced in the Senate by Ms. Cortez Masto (for herself and Mrs. Hyde-Smith) and referred to the Finance Committee.

Impact Areas

Primary group/area affected: Individuals and businesses involved in legal sports betting within states that permit sports wagering and within tribal-state compacts; sports betting operators and regulators.Secondary group/area affected: Federal revenue—removal of the excise tax on eligible sports wagers could reduce federal tax receipts related to wagering; state and tribal gaming revenues may indirectly be affected due to potential changes in wagering activity.Additional impacts: Could incentivize expansion of legal sports betting where allowed, influence cross-border or interstate wagering dynamics, and interact with tribal-state compacts and state gaming frameworks under the Indian Gaming Regulatory Act. May also affect considerations around illegal or offshore wagering if federal taxation is reduced on legitimate bets.

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