New Bill Proposes Using Gambling Tax Revenue for Addiction Treatment and Research Grants Starting 2025

This bill, the "Gambling Addiction Recovery, Investment, and Treatment Act," sets up a system to use federal taxes collected from gambling activities to fund state-level treatment and prevention programs, as well as research into gambling addiction. Specifically, it proposes dedicating 37.5% of certain federal gambling tax revenues (from Section 4401(a)(1) of the tax code) each year from fiscal year 2025 through 2034 to grants for states. An additional 12.5% of the same tax revenue would be allocated for research grants focused on gambling addiction during the same period.

Tapping the Pot: How Gambling Taxes Could Fund Help

The core idea here is channeling money generated by wagering back into addressing the harms it can cause. The Department of Health and Human Services (HHS), through the Assistant Secretary for Mental Health and Substance Use, would manage the state grant program. If a state doesn't apply for its share, the funds would be redistributed among the states that did apply. Simultaneously, the National Institute on Drug Abuse (NIDA) would receive its portion to support scientific studies aimed at better understanding and combating gambling addiction. Think of it like a dedicated funding stream trying to create a direct link between the activity and mitigating its potential negative consequences.

States Get Funds, But Will It Match the Need?

A key detail is how the state funds get divided. The bill directs HHS to use the existing allocation formula for substance abuse prevention and treatment block grants. This raises a practical question: does a state's need for substance abuse funding directly correlate with its need for gambling addiction services? It's possible a state with significant gambling infrastructure and resulting addiction issues might not rank as highly using a substance abuse metric compared to another state, potentially leading to a mismatch between where the problems are most acute and where the money flows. This approach might streamline administration but could overlook specific, localized needs for gambling addiction support.

Researching the Risks and Reporting Back

Beyond immediate treatment, the bill invests in understanding the problem better. The funds directed to NIDA are earmarked for research grants, aiming to build a stronger evidence base for what works in prevention and recovery. To ensure accountability, the legislation requires the Secretary of HHS to report back to Congress within three years on the effectiveness of both the state grant programs and the research initiatives funded by this act. This reporting loop is designed to provide data on whether the investment is making a difference and guide future efforts.