The POINTS Act: Congress Proposes First Federal Funding for Problem Gambling Treatment

The United States has been collecting tax revenue from legal sports betting for years. Until now, none of that federal money has been earmarked for the people most harmed by gambling’s expansion.

A newly introduced bill in Congress aims to change that. The Providing Opportunities for Individuals In Need of Treatment & Support (POINTS) Act would redirect a portion of the existing federal excise tax on sports betting into a dedicated fund for problem gambling prevention, treatment, and recovery programs. If it passes, it would represent the first dedicated stream of federal funding for gambling addiction services in U.S. history.

What the POINTS Act Would Do

The bill’s mechanics are straightforward: it would carve out a share of the federal sports betting excise tax — currently 0.25% on legal wagers — and direct it to fund:

• Prevention programs — education, awareness campaigns, and early intervention targeting at-risk populations
• Treatment services — funding for counseling, clinical treatment, and support programs for individuals with gambling disorders
• Recovery support — resources for long-term recovery, including peer support networks and crisis intervention

Currently, problem gambling services in the U.S. are funded through a patchwork of state allocations, operator-funded responsible gambling programs, and nonprofit organizations — primarily the National Council on Problem Gambling (NCPG). Federal funding for this specific issue essentially doesn’t exist. The POINTS Act would create a sustainable, nationwide baseline.

Why Now

The timing reflects a political reality that the industry has been watching build for several years: the expansion of legal sports betting has outpaced the infrastructure to address its harms.

Since PASPA was overturned in 2018, legal sports betting has launched in nearly 40 states. Total annual legal handle in the U.S. now exceeds $120 billion. The federal government collects excise tax on every legal wager placed — and none of it has gone specifically toward addressing problem gambling.

That imbalance is increasingly difficult to defend politically. A few factors are converging in 2026:

• High-profile integrity scandals — the college basketball point-shaving indictments, multiple professional athlete gambling suspensions, and ongoing scrutiny of sports betting’s effect on player behavior have made gambling addiction a front-page issue
• Academic research — studies from 2024 and 2025 documented significant increases in problem gambling prevalence in states following sports betting legalization, particularly among young men
• State-level precedents — states like Pennsylvania, New Jersey, and Illinois already direct portions of gaming tax revenue to problem gambling programs; a federal version is the logical extension
• NCAA advocacy — the NCAA’s sustained engagement on student-athlete gambling issues has built bipartisan support for addressing gambling’s harms alongside its expansion

The Scope of the Problem

Problem gambling affects an estimated 1-3% of the U.S. adult population — approximately 3 to 10 million people. The National Council on Problem Gambling’s helpline has seen a consistent increase in contacts since sports betting legalization accelerated, with call volume up significantly in states within their first year of launching legal mobile wagering.

The at-risk populations most frequently cited in research:

• Young adult men (18-34) — the primary demographic for sports betting apps; also the highest-risk age group for developing gambling disorders
• People with co-occurring mental health conditions — depression, anxiety, and substance use disorders are frequently comorbid with problem gambling
• College students — on-campus gambling and sports betting app use have increased significantly since legalization; the NCAA’s own data shows hundreds of thousands of student-athletes receiving problem gambling education annually

Industry Implications

The POINTS Act is not framed as punitive toward the sports betting industry — it’s drawing from an existing tax structure rather than imposing new levies. But it represents a meaningful shift in how Congress is framing its relationship with legal gambling.

For operators, the political calculus is nuanced:

Potential upside

• Federal problem gambling funding reduces pressure on operators to self-fund responsible gambling programs at scale
• Positions the industry as a contributor to solutions rather than a target for criticism
• May reduce appetite for more punitive federal intervention (higher taxes, prop bet bans, marketing restrictions)

Potential concerns

• Creates a federal policy foothold for further gambling regulation — once Congress establishes a funding mechanism, it can attach conditions
• If the earmarked percentage is insufficient to meet demand, pressure will build to increase the excise tax rate or operator contributions
• Sets a precedent that legal gambling revenue must be offset by treatment funding — which could be applied to iGaming, prediction markets, and other expanding verticals

How It Compares to State Models

States have taken varying approaches to funding problem gambling services:

• New Jersey — 2.5% of casino gaming tax revenue directed to problem gambling programs
• Pennsylvania — $2M annually from gaming tax revenue; additional operator contributions
• Illinois — 2% of adjusted gross receipts from sports betting directed to mental health and problem gambling treatment
• Colorado — $130 per sports betting license and a portion of tax revenue fund problem gambling programs

A federal program layered on top of these state efforts would significantly expand the total funding pool and, critically, ensure that states without strong funding mandates still have access to treatment infrastructure.

Prospects for Passage

Congressional gambling legislation moves slowly, and the POINTS Act faces the same headwinds as most federal bills: committee referrals, competing priorities, and the general difficulty of moving any legislation through a divided Congress.

That said, the framing is deliberately bipartisan — fiscal conservatives can support it as redirecting existing taxes rather than raising new ones; social policy advocates can support it as a direct response to gambling’s documented harms. The NCAA’s consistent advocacy on student-athlete gambling issues provides ongoing institutional pressure.

It’s unlikely to pass in 2026. It is likely to build enough momentum that a version of it passes within the next Congress — particularly if a high-profile gambling addiction story breaks in a way that creates political urgency.

Frequently Asked Questions

What is the POINTS Act?

The Providing Opportunities for Individuals In Need of Treatment & Support (POINTS) Act is federal legislation that would allocate a portion of the existing federal excise tax on sports betting to fund problem gambling prevention, treatment, and recovery programs. It would create the first dedicated stream of federal funding for gambling addiction services in U.S. history.

How much money would the POINTS Act generate for problem gambling treatment?

The bill draws from the existing federal excise tax on sports betting (0.25% on legal wagers). With U.S. legal sports betting handle exceeding $120 billion annually, even a small carve-out would generate tens of millions of dollars for treatment programs. The exact allocation amount would depend on the final bill language.

How prevalent is problem gambling in the United States?

An estimated 1-3% of U.S. adults — approximately 3 to 10 million people — meet clinical criteria for problem gambling. Call volume to the National Council on Problem Gambling’s helpline has increased consistently since sports betting legalization expanded, particularly in states within the first year of launch.

How is problem gambling currently funded in the U.S.?

Primarily through state gaming tax allocations (which vary widely), operator-funded responsible gambling programs, and nonprofit organizations like the National Council on Problem Gambling. There is currently no dedicated federal funding stream for gambling addiction services.

Is the POINTS Act likely to pass?

Passage in 2026 is unlikely given congressional dynamics, but the bill has bipartisan framing and institutional support from the NCAA and public health community. Most observers expect a version of this legislation to pass within the next one to two congressional terms.