New Act Dedicates Gambling Tax Revenue to Fund State Addiction Treatment and Research Through 2034

The newly proposed Gambling Addiction Recovery, Investment, and Treatment Act aims to create a dedicated, long-term funding stream to tackle problem gambling across the country. Essentially, this bill takes a cut of the federal taxes already collected from gambling operations and earmarks it specifically for addiction treatment and research, running from fiscal year 2025 through 2034. It’s a classic public health move: use the revenue generated by the activity to mitigate the negative consequences of that activity.

The State Lifeline: How Treatment Gets Funded

For states, the bill authorizes 37.5 percent of the estimated federal gambling tax revenue (specifically, the tax under section 4401(a)(1) of the Internal Revenue Code) to be distributed as grants. This money is designed to help state public health agencies fund prevention and treatment programs for gambling addiction. Here’s the clever part: the federal government isn't reinventing the wheel on how to divide this money up. They plan to use the exact same formula currently used for existing substance abuse block grants. If your state is already getting a certain share of substance abuse funding, it will get the same share of this new gambling addiction money. This approach should make the rollout smoother and faster, avoiding bureaucratic headaches. If a state opts out of applying for the grant, their share gets redistributed to the states that did apply, keeping the money in play.

Backing the Science: Research Gets a Boost

Beyond state-level treatment, the bill authorizes 12.5 percent of that same estimated tax revenue figure to go directly to the National Institute on Drug Abuse (NIDA). NIDA will use these funds to issue grants specifically for research into gambling addiction. This is crucial because while we have a lot of data on substance abuse, the science around compulsive gambling often lags behind. For researchers, this means dedicated, reliable funding to finally understand the mechanics of this addiction, which could lead to better screening tools and more effective recovery programs down the line.

What This Means for You

If you or someone you know struggles with gambling, this bill is a big deal. For years, problem gambling has often been lumped in with general mental health or substance abuse services, meaning dedicated resources were scarce. By creating a dedicated funding stream tied to tax revenue—a revenue source that is likely to be stable or grow—states can finally establish or expand specialized treatment centers, hotlines, and preventative education campaigns. For the average person, this means that if you need help, the infrastructure to provide it should become more accessible and better funded, whether you’re in a major city or a small town.

The Accountability Check

The bill isn't just about throwing money at the problem; it includes a built-in accountability measure. Three years after the law takes effect, the Secretary of Health and Human Services is required to report back to Congress on the effectiveness of both the state grant programs and the NIDA research efforts. This ensures that the programs are reviewed and gives Congress the data needed to adjust or renew the funding mechanism after the initial ten-year authorization period ends in 2034. It’s a smart way to ensure the money is actually making a difference, not just covering costs.