A significant disconnect has emerged between American public opinion on problem gambling and federal policy response, as lawmakers prepare to consider groundbreaking legislation that could establish the nation's first dedicated federal funding for gambling addiction treatment.
The Providing Opportunities for Individuals In Need of Treatment & Support (POINTS) Act, introduced by a bipartisan group of House representatives, would redirect one-third of federal excise tax revenue from sports wagering to fund problem gambling prevention, treatment, and recovery programs. The proposal comes as cultural attitudes shift dramatically – a national Harris Poll survey commissioned by the National Council on Problem Gambling (NCPG) found that nearly four in five Americans now view problem gambling as equally serious to alcohol or drug addiction.
Federal Revenue Stream Already in Place
The legislation would tap into an existing revenue source rather than creating new taxes. Federal excise tax revenue from sports wagers exceeded $300 million in fiscal year 2025 alone, providing a substantial foundation for treatment infrastructure without additional taxpayer burden.
The timing appears strategic given the explosive growth in legal sports betting. According to the American Gaming Association, Americans are expected to legally wager $3.3 billion on the 2026 NCAA basketball tournaments alone – representing a 54% increase over the past three years. As digital betting products proliferate and new markets like prediction betting emerge, the infrastructure gap becomes increasingly pronounced.
"The federal government was glad to license and tax the industry; it has no interest in the consequences."
— Heather L. Maurer, Executive Director, National Council on Problem Gambling
$300M
Federal excise tax revenue from sports wagering (FY2025)
$3.3B
Expected legal wagers on 2026 NCAA tournaments
54%
Three-year growth in tournament betting
20M
Americans with gambling problem indicators
8%
Percentage of adults affected
$14B
Annual social cost estimate
66%
Adults concerned about youth gambling exposure
32 of 82
Average state compliance with protection standards
338x
Greater funding for substance use vs gambling disorders
7x
Higher prevalence of substance vs gambling disorders
Treatment Gap Reaches Crisis Proportions
The scale of unmet need is substantial. Nearly 20 million Americans – representing 8% of adults – report experiencing indicators of gambling problems multiple times in the past year. The estimated annual social cost reaches $14 billion, yet federal investment in addressing these issues remains at zero.
State responses have proven inadequate and inconsistent. Alaska, Alabama, Hawaii, Idaho, Mississippi, Montana, Utah, Texas, and the District of Columbia have failed to dedicate state-level funding for problem gambling programmes, despite most permitting legalized gambling operations within their borders.
Where programmes do exist, they operate in isolation with no national standards or coordination mechanisms. The POINTS Act would establish a competitive federal grant programme administered through SAMHSA, providing states, tribes, and tribal organisations with coordinated funding for evidence-based interventions.
| State | Dedicated Problem Gambling Funding |
|---|---|
| Alaska | $0 |
| Alabama | $0 |
| Hawaii | $0 |
| Idaho | $0 |
| Mississippi | $0 |
| Montana | $0 |
| Utah | $0 |
| Texas | $0 |
| District of Columbia | $0 |
State Funding Coverage Gaps
Nine states and DC currently provide zero dedicated funding for problem gambling programs despite permitting legal gambling operations. These jurisdictions include Alaska, Alabama, Hawaii, Idaho, Mississippi, Montana, Utah, Texas, and Washington D.C. The POINTS Act would provide federal grants to fill these coverage gaps through SAMHSA-administered competitive funding.
Clinical Recognition vs Policy Response
The disparity becomes more stark when compared to federal responses to other addictive disorders. Gambling disorder appears in the DSM-5 as an addictive disorder, sharing neurological pathways with substance use disorders and presenting clinically analogous symptoms including loss of control, preoccupation, escalation, and continued behaviour despite serious consequences.
However, substance use disorders are roughly seven times more prevalent than gambling disorders in the United States, yet public funding for substance use services is 338 times greater. This funding imbalance extends to legal protections – Americans with Disabilities Act provisions that protect people recovering from substance use disorders do not reliably extend to those experiencing gambling addiction.
Warning
Unlike substance use disorders, gambling addiction recovery may not qualify for reliable Americans with Disabilities Act protections. This legal gray area can impact employment rights, housing protections, and access to accommodations during recovery. Federal legislation could establish clearer guidelines for disability protections related to gambling disorder treatment.
Youth Exposure Concerns Intensify
Prevention programming faces particular urgency given early exposure patterns. Two-thirds of Americans who are 21 and older report having gambled before reaching legal age, while 66% of adults express concern about youth exposure to gambling and gambling-like activities.
Sports betting applications, online casinos, and gambling-adjacent features in video games have created unprecedented youth exposure at scales existing frameworks cannot handle. A recent analysis by NCPG and Vixio found that U.S. states meet, on average, only 32 of the 82 player protection standards outlined in NCPG's Internet Responsible Gambling Standards.
The POINTS Act would specifically support prevention programming and youth-focused interventions, addressing what advocates describe as a rapidly closing window for early intervention.
Early Intervention Window
Research indicates that two-thirds of adult gamblers began before age 21, making prevention programs critical during teenage years. The proliferation of gambling-adjacent features in video games and social media creates exposure points that traditional prevention frameworks don't address. Operators should consider age verification beyond legal requirements to capture these early intervention opportunities.
Bipartisan Legislative Momentum
The legislation represents rare bipartisan collaboration in contemporary Congress, with Republican and Democratic sponsors from Indiana, Oregon, Louisiana, and Iowa. It marks the first bipartisan federal legislation in 15 years aimed at the general population affected by problem gambling.
"Americans have come to recognize problem gambling as a public health issue. The federal government has not kept pace."
— Heather L. Maurer, Executive Director, National Council on Problem Gambling
Support infrastructure already exists for implementation. The National Problem Gambling Helpline operates 24/7 at 1-800-MY-RESET, providing immediate intervention capabilities that federal funding could substantially expand.
Regulatory Precedent for Operator Responsibilities
The legislation's passage would establish important precedent for how regulators approach operator responsibilities beyond licensing and taxation. By creating federal treatment infrastructure funded through industry revenue, the POINTS Act would formalise the connection between gambling expansion and harm mitigation that operators increasingly face in jurisdictional discussions.
For compliance officers and product managers, the initiative signals growing federal attention to responsible gambling measures beyond state-level requirements. The establishment of national standards through SAMHSA administration could influence how jurisdictions evaluate operator prevention programmes and duty of care obligations. The cultural shift documented in polling suggests continued political momentum for gambling harm reduction measures. Operators expanding into new markets should anticipate increased scrutiny of responsible gambling tools, early intervention capabilities, and collaboration with treatment providers as federal involvement grows beyond its current limited scope.
The legislation would redirect one-third of existing federal excise tax revenue from sports wagering to fund treatment programs. This uses an established revenue stream rather than creating new taxes or additional taxpayer burden.
Nine states and DC provide zero dedicated state funding: Alaska, Alabama, Hawaii, Idaho, Mississippi, Montana, Utah, Texas, and Washington D.C. The federal grants would help fill these coverage gaps.
While gambling disorders are recognized in the DSM-5 as addictive disorders, public funding for substance use services is 338 times greater than gambling disorder funding. This disparity exists despite both conditions sharing similar neurological pathways and clinical symptoms.
The National Problem Gambling Helpline operates 24/7 at 1-800-MY-RESET, providing immediate intervention capabilities. Federal funding through the POINTS Act would substantially expand these existing support services.
Two-thirds of Americans who gamble began before age 21, creating a critical prevention window. Modern exposure through sports betting apps, online casinos, and gambling-like video game features occurs at unprecedented scales that existing frameworks cannot adequately address.
According to NCPG.
