PolicyBrief
S. 454
119th CongressFeb 6th 2025
Gambling Addiction Recovery, Investment, and Treatment Act
IN COMMITTEE

The "Gambling Addiction Recovery, Investment, and Treatment Act" allocates grants to states for gambling addiction treatment and to the National Institute on Drug Abuse for gambling addiction research, funded by a portion of federal gambling tax revenue.

Richard Blumenthal
D

Richard Blumenthal

Senator

CT

LEGISLATION

New Bill Earmarks Gambling Tax for Addiction Treatment: States to Get Funds by 2025

This bill, officially called the "Gambling Addiction Recovery, Investment, and Treatment Act," is all about tackling gambling addiction head-on. Starting in 2025, it sets aside a chunk of the taxes collected from gambling to fund state-level treatment programs and research into better understanding the addiction.

Funding the Fight

The core of this bill is about where the money goes. It directs 37.5% of the taxes from specific gambling activities (section 4401(a)(1) of the Internal Revenue Code) straight to states. Think of it like this: if a state usually gets $1 million for substance abuse programs under the existing formula, they'd get a similar proportion of this new gambling tax money for gambling addiction treatment. If a state decides to sit this one out, their share gets divided among the states that are participating. Another 12.5% of those same tax revenues will go to the National Institute on Drug Abuse for research grants specifically focused on gambling addiction.

Real-World Rollout

So, what does this mean on the ground? For someone struggling with gambling addiction, it could mean more access to treatment programs, counseling, and support services in their state. For example, a construction worker who realizes his weekend sports betting has gotten out of control might find a state-funded program that offers therapy and financial counseling, thanks to this bill. The bill also pushes for more research, meaning better treatment options could be on the horizon. The Secretary of Health and Human Services has to report back to Congress within three years (by 2028, if passed) on how well all of this is working. This means we'll get a check-up on whether the money is actually making a difference.

The Big Picture

This bill acknowledges that gambling addiction is a real problem that needs dedicated resources, similar to how we treat substance abuse. It's setting up a system to use some of the money generated from gambling to directly address the problems caused by gambling. It's a direct approach. The funding will be available every year from 2025 through 2034, providing a long-term approach to addressing the issue.

Potential Hiccups

While the bill’s intent is straightforward, there are always potential challenges. A key one will be ensuring states use the funds effectively. The bill uses a formula similar to existing substance abuse grants, which should streamline the process, but each state will need to implement programs and track outcomes. The mandated report to Congress in three years is a crucial check-in to see if the money is being spent wisely and actually helping people.