POINTS Act Puts Federal Funding Behind Gambling Harm Response

POINTS Act Puts Federal Funding Behind Gambling Harm Response
A bipartisan House bill would create the first dedicated federal funding stream for gambling addiction services. One-third of the existing federal excise tax on sports wagers would be directed to prevention, treatment, and recovery programs.

A group of lawmakers, including Erin Houchin, Andrea Salinas, Mariannette Miller-Meeks, and Troy Carter, introduced H.R. 7875, the POINTS Act, on March 9, referring the measure to the House Committee on Energy and Commerce. Lawmakers introduced the bill during Problem Gambling Awareness Month, framing the measure as a public health response to a betting market that’s developed much faster than the support structures around it.

A New Use for Existing Betting Tax Revenue

The basic concept is that instead of creating a brand-new tax, the funds collected through the excise tax on sports betting would be allocated toward gambling harm services. The expected amount is estimated at around $100 million annually. The National Council on Problem Gambling (NCPG) states that the federal excise tax on sports betting generated over $150 million in fiscal 2024 and an estimated $300 million in fiscal 2025. Thus, this measure is presented as a very pragmatic alternative to a new tax (that might be politically difficult).

The legal text establishes a grant program under the Public Health Service Act. It would allow for competitive awards to states, Indian Tribes, and Tribal organizations. These grants could support a variety of initiatives, such as screening, assessments, prevention programs, provider training, outpatient treatment services, including telehealth outpatient treatment, peer support services, and helpline services. The bill also gives priority to grant applicants serving disproportionately affected groups (such as men, youth, Native Americans, members of the Armed Forces, and veterans, as well as communities in health professional shortage areas).

Why the Issue Is Reaching Washington Now

According to the American Gaming Association, sports betting revenue in the US for 2025 increased by 22.8% year over year to $16.96 billion. The handle for the year was $166.94 billion. Online sportsbooks were the mainstay in 2025, comprising 96.5% of the market. As gambling is becoming more accessible (especially via mobile platforms), the argument for leaving gambling to the states alone is getting harder to sustain.

The supporters of the bill and the NCPG cite estimates that nearly 20 million people reported indicators of problematic gambling behavior many times in the past year. As per their estimates, the social costs of the problem total around $14 billion each year. The World Health Organization has also recognized that the impact of gambling can lead to financial distress, relationship problems, family violence, mental disorders, and suicide.

What the Bill Could Change

Even at this early stage, the proposal is significant for two reasons. First, it shifts the focus on gambling addiction from a secondary concern of state regulation to a legitimate federal health policy concern. Second, it connects industry growth with a permanent support mechanism, which could influence future battles over federal standards, reporting requirements, and responsible gaming obligations.

The bill still needs to pass the usual tests in Congress. However, the format looks workable enough that it has a chance to remain part of the debate. According to the proposal, the funding mechanism already exists, and the grants are targeted.

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