The POINTS Act: Congress Wants to Fund Problem Gambling Treatment With a Betting Tax

Sports betting is bigger than ever in the United States — Americans wagered nearly $167 billion on legal sports bets in 2025 alone. But as the industry booms, a growing number of people are developing serious gambling problems. And until now, the federal government hasn’t dedicated a single dollar to help them.

A new bipartisan bill in Congress aims to change that. It’s called the POINTS Act, and it could create the first dedicated federal funding stream for gambling addiction treatment in U.S. history — without raising anyone’s taxes by even a penny.

What Is the POINTS Act?

POINTS stands for Providing Opportunities for Individuals in Need of Treatment and Support. It was introduced on March 10, 2026, during Problem Gambling Awareness Month, by four bipartisan members of Congress:

• Rep. Erin Houchin (R-Indiana)
• Rep. Mariannette Miller-Meeks (R-Iowa)
• Rep. Andrea Salinas (D-Oregon)
• Rep. Troy Carter (D-Louisiana)

The bill is straightforward in concept: the federal government already collects a tax on every legal sports bet in the country. Right now that money just disappears into the General Fund — the government’s catch-all budget bucket. Nobody in Congress can even clearly say where it currently goes.

The POINTS Act would redirect one-third of that existing tax revenue to fund gambling addiction prevention, treatment, and recovery programs.

Where Does the Money Come From?

Here’s the mechanic: the federal government levies a 0.25% excise tax on every legal sports wager. That’s a quarter of a percent on every bet. There’s also a $50 “head tax” per sportsbook employee.

With Americans betting $167 billion in 2025, that 0.25% tax generated more than $400 million for the federal government. The POINTS Act would allocate one-third of that — roughly $100 million per year — to gambling addiction services.

No new taxes. No new fees. Just redirecting money that’s already being collected but apparently sitting in a budget black hole.

Rep. Salinas put it plainly: “Gambling addiction can devastate individuals and families, yet too many communities still lack the resources needed to provide prevention, treatment, and recovery support. The POINTS Act helps close that gap by investing existing gambling excise tax revenue into programs that expand care, raise awareness, and connect people to the help they need.”

Why Is This Needed? The Problem Gambling Crisis

The timing of this bill isn’t random. The rapid expansion of legal sports betting since 2018 — when the Supreme Court struck down the federal ban — has made it easier than ever to place a bet. That’s mostly a good thing. But it’s also created real consequences for vulnerable people.

According to the National Council on Problem Gambling (NCPG), nearly 20 million Americans show signs of problematic gambling behavior. The estimated annual social cost of problem gambling in the U.S. is $14 billion — counting things like lost productivity, financial hardship, family breakdown, and mental health costs.

Here’s the kicker: gambling disorder is officially recognized in the DSM-5 (the psychiatric diagnostic manual) as an addictive disorder, on par with alcohol and drug addiction. But unlike alcohol or drug addiction, there is currently no dedicated federal funding for gambling addiction treatment or research. None.

States chip in varying amounts through their own sports betting tax revenue, creating a patchwork of services that leaves many communities — especially rural areas — without adequate help. The POINTS Act is designed to fill that gap at the national level.

Who Would Benefit?

The POINTS Act would establish a competitive federal grant program, administered through SAMHSA (the Substance Abuse and Mental Health Services Administration). States, Native American tribes, and tribal organizations could apply for grants to expand services.

The bill prioritizes high-risk populations, including:

• Youth
• Veterans
• Men (who statistically have higher rates of problem gambling)
• Native Americans
• Rural communities

Funded programs could include outpatient treatment, telehealth services, peer recovery support, screening and early intervention programs, and community education.

What Are the Odds It Passes?

Honestly? The bill has a few things going for it and a few things working against it.

• In its favor: It’s bipartisan (both parties co-sponsoring), it doesn’t raise taxes, and it has broad support from public health organizations. The NCPG immediately endorsed it. Problem Gambling Awareness Month gave it a natural media moment. The bill also comes at a time when sports betting has an unusually high public profile.
• Working against it: Congress is busy and gridlocked. As of March 2026, the POINTS Act has been introduced but not yet voted on. Similar bills — like the GRIT Act and the SAFE Bet Act — have also been stalled. The gambling industry, which pays the excise tax, would prefer to see it eliminated entirely rather than redirected.

It’s also worth noting a wrinkle: prediction market platforms like Kalshi don’t currently pay state or federal taxes the way traditional sportsbooks do. As prediction markets grow, the excise tax base could actually shrink if the industry shifts away from traditional sportsbooks.

The POINTS Act Makes Sense

The POINTS Act is a rare piece of legislation that almost everyone can agree makes sense in principle. The government collects hundreds of millions of dollars from sports betting taxes. Some of that money should help the people who develop gambling problems as a result of the industry’s growth. Simple.

Whether it actually becomes law is a different question. But for anyone who cares about responsible gambling — or who knows someone who struggles with betting addiction — this is a bill worth watching. It might be the most important piece of gambling legislation nobody is talking about.