New Federal Act Proposes Funds for Problem Gambling

Two US lawmakers are proposing the introduction of a federal fund for problem gambling. Dubbed the GRIT Act - Gambling Addiction Recovery, Investment, and Treatment Act - the new law would affect responsible gambling programs across all States, including Pennsylvania.

However, the act has already been hit by controversy as there appears to be disagreement about what the source of this funding should be. 

The GRIT Act - All You Need to Know

The GRIT Act was proposed by US Senator Richard Blumenthal of Connecticut and US Representative Andrea Salinas of Oregon, with the goal of allocating more funds to problem gambling at a federal level. 

The National Council on Problem Gambling (NCPG) described this as the first-ever federal funding program that would be dedicated to preventing, treating, and researching responsible gambling and addiction across the entirety of the US.

A press statement sent out to the media revealed the sources for this funding as including 50% of the current federal sports excise tax revenue for gambling addiction treatment and research. 

According to the National Council on Problem Gambling, 75% of this funding would be distributed to the states for gambling addiction prevention and treatment through the existing Substance Abuse Prevention and Treatment Block Grant program. The remaining 25% will go to the National Institute of Drug Abuse to fund grants for research into gambling addiction.

The Act would also authorize spending for 10 years, while requiring a report to be presented to Congress to document the effectiveness of the funding.

The main bone of contention quoted by the American Gambling Association (AGA) appears to be the continued existence of the 0.025% excise tax on sports betting, which the enacting of the GRIT Act would forever cement. 

How Will Pennsylvania Gambling Sites Be Affected?

Pennsylvania online casinos already promote responsible gambling by funding programs through game taxes. There are three departments dedicated to preventing or treating problem gambling:

• PGCB Office of Compulsive and Problem Gambling 
• Council on Compulsive Gambling of Pennsylvania 
• Department of Drug and Alcohol Programs (DDAP) 

All three organizations would benefit from additional funding were the GRIT Act to become law, although operators have warned about possible confusion arising from different funding requirements arising from different pieces of legislation.