GRIT Act to Combat Rising Gambling Addiction across the US

Earlier this month, Sen. Richard Blumenthal along with Rep. Andrea Salinas introduced a new proposal called the Gambling Addiction, Recovery, Investment, and Treatment (GRIT) Act, proposing the allocation of additional funds toward treatment and prevention of gambling-related disorders. The proposal is built upon the existing federal excise tax that applies 0.0025% on every sports wager across the country.

The exponential growth of sports betting across the nation resulted in record federal excise tax proceeds which surpassed $270 million for 2023. Per the GRIT Act, 50% of the revenue derived from the federal sports betting excise tax would be dedicated toward combatting gambling harm. From the diverted revenue, some 25% would be dedicated toward research, while 75% would be allocated toward treating problem gambling.

In a recent interview for The Guardian, Salinas highlighted the importance of the GRIT Act. She explained that this initiative helps provide necessary funding for treating gambling addiction and prevention. Salinas spoke about the increasing profits of sports betting operators across the nation, saying that the GRIT Act would be the best method to provide much-needed treatment. According to her, the proposal would help prevent a nationwide mental health crisis related to betting.

“Rather than try to put the genie back in the bottle, let’s make sure we have the research and the treatment before it does become out of control.“

Rep. Andrea Salinas

The Proposal Will Help Save Lives

She added that everything in moderation can be fun, including gambling. Yet, Salinas warned that the ease of access to betting applications is pushing some people into gambling addiction. “Nearly 7 million Americans are struggling with the gambling addiction,” she added.

Supporting the allocation of additional funds toward gambling harm treatment and prevention, Derek Webb, the founder of the safer gaming lobbying group the Campaign for Fairer Gambling, also spoke about the benefits of the GRIT Act. According to him, the proposal is the “best chance to save lots of lives by doing what’s responsible, fair and inevitable.”

Despite the intentions and warnings by organizations supporting the treatment and prevention of gambling harm, not everyone agrees with Salinas and Blumenthal’s proposal. Earlier this month, the American Gaming Association (AGA), the industry body representing the US casino industry, rejected the GRIT Act. Chris Cylke, AGA’s senior vice president of government relations, deemed the federal excise tax “antiquated,” claiming that in the present day, it gives an advantage to the illegal gambling sector.