GRIT Act proposes federal funding to tackle gambling addiction
In a move intended ?to address the challenges of gambling addiction in the United States, Senator Richard Blumenthal and U.S. Representative Andrea Salinas have introduced the Gambling Addiction Recovery, Investment, and Treatment (GRIT) Act. This federal bill, designed to revolutionize the approach to gambling-related issues, aims to create the first-ever dedicated funding stream for preventing, treating, and studying gambling addiction at the national level.
The issue at hand
U.S. Representative Andrea Salinas.
The significance of the GRIT Act is underscored by the stark statistics surrounding gambling addiction in the United States:
The national annual social cost of problem gambling is estimated at a staggering $7 billion.
The National Council on Problem Gambling (NCPG) estimates that 7 million American adults suffer from gambling addiction.
Unlike other major addiction categories such as alcohol, tobacco, and drugs, there are currently no federal funds designated for problem gambling treatment or research.
Additionally, the federal government levies a 0.25% excise tax on all money wagered on sports in the United States, contributing to the general fund. Notably, the revenue from this tax has witnessed a significant surge, from $38.7 million in FY20 to $110.7 million in FY21, reaching $90.9 million as of March 2022 for FY22, with expectations of further increases as more states legalize sports gambling.
What the GRIT Act would do
The GRIT Act is designed to address these concerns comprehensively:
The legislation proposes setting aside 50% of the federal sports excise tax revenue for gambling addiction treatment and research.
75% of this allocation would be distributed to states for gambling addiction prevention and treatment through the Substance Abuse Prevention and Treatment Block Grant programme.
The remaining 25% would go to the National Institute of Drug Abuse to fund grants for research into gambling addiction.
Importantly, the GRIT Act authorizes spending for a decade, with a mandatory report to Congress on the programme’s effectiveness within three years of passage.
Critically, the legislation does not increase taxes on Americans but instead establishes a funding stream that will expand alongside the growing prominence of online sports wagering.
The GRIT Act strategically avoids adding to government bureaucracy, utilizing existing Health and Human Services (HHS) programmes and procedures.
The result
If the GRIT Act is enacted, the impact on tackling gambling addiction in the United States would be profound:
The legislation represents the first-ever dedicated federal funding for programmes aimed at preventing, treating, and studying gambling addiction.
State health agencies and nonprofits, previously left to navigate the issue on their own, would receive vital support.
The allocation of funds allows for investment in best practices and comprehensive research, an endeavour only feasible at the national level.
“Gambling addictions are hurting countless families, children, and communities in Oregon and across America. Yet unlike alcohol and drug addictions, there are currently no federal funds devoted solely to helping stop problem gambling,” said Rep. Salinas. “Our legislation will deliver much-needed resources to states and nonprofits, promoting new research and ensuring more people can get into treatment and recovery. This is a commonsense solution and I urge my colleagues to join us in supporting it.”
Senator Richard Blumenthal.
“The growing legalization of sports and online betting, paired with the ability to place bets from your phone whenever you want have created a perfect storm for gambling addiction,” said Sen. Blumenthal. “Dedicated federal resources to tackle problem gambling head-on will provide much-needed support, resources, and treatment for those suffering from gambling addiction. As the number of Americans who are suffering from gambling addiction surges, legislation like the GRIT Act is needed now more than ever.”
Join SiGMA Eurasia in Dubai between the 25 and 27 February 2024
The fourth edition of SiGMA Eurasia will once again be held at the InterContinental Dubai Festival City, providing invaluable opportunities for attendees to network with industry professionals, gain exposure to the latest tech and innovations in the sector, meet key decision makers, and gain insight into new markets. Find all the details here.
