Federal gambling tax now funds addiction treatment in states

What it does

This bill authorizes the federal government to award grants to states for gambling addiction treatment and recovery programs, funded by a portion of federal gambling taxes. The grants are distributed to states using the same formula as substance-abuse block grants. The National Institute on Drug Abuse may also fund gambling addiction research. The bill authorizes appropriations through 2034, with funding tied to 37.5% of federal gambling tax revenue for state grants and 12.5% for research.

Why we flagged it

The bill's sole operative mechanism is to authorize federal grants for gambling addiction treatment and research, funded through a dedicated portion of gambling tax revenue. This is straightforward public health legislation with no hidden provisions or narrow beneficiaries.

What the text implies

• Funding is contingent on annual appropriations; the authorization does not guarantee money will actually be allocated, so the bill's impact depends on Congress following through with actual spending.
• The formula ties state grants to existing substance-abuse block-grant allocations, which may not reflect gambling-addiction prevalence by state—some high-prevalence states may receive less than proportional funding.
• Gambling tax revenue fluctuates with economic conditions and gambling participation; funding levels will vary year to year, creating potential instability in state programs.
• The bill does not specify how states must use grants or establish outcome metrics, leaving implementation details to HHS rulemaking.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

The bill creates dedicated federal funding for gambling addiction treatment and research, addressing a public health need that currently lacks systematic federal support. Citizens struggling with gambling addiction and their families gain access to treatment resources, and the funding mechanism (tying appropriations to gambling tax revenue) creates a logical nexus between the harm and the remedy.

Who stands to gain

• state mental health and substance-abuse agencies
• treatment providers and counselors (indirect, through state grants)
• research institutions (through NIDA grants)

Named in the bill

Assistant Secretary for Mental Health and Substance Use, Substance Abuse and Mental Health Services Administration (SAMHSA), National Institute on Drug Abuse (NIDA), Secretary of Health and Human Services, States, Internal Revenue Code Section 4401(a)(1), Public Health Service Act Section 1954

Where it stands

• Feb 6, 2025 — Introduced · Congress.gov: “Introduced in Senate”
• Feb 6, 2025 — Referred to Senate Committee on Health, Education, Labor, and Pensions · Congress.gov: “Read twice and referred to the Committee on Health, Education, Labor, and Pensions”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

5 lobbying clients named this bill on 6 disclosure filings across 2 quarters, Dec 2025 to Jun 2026. Those filings disclosed $830,000 in lobbying spend. A filing names 4 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 78% of bills with at least one filing.

Richard Blumenthal, the sponsor, reported $111,550 in PAC receipts in the 2026 cycle.

• American Gaming Association — $660,000 on 1 filing
• Underdog Sports Holdings, Inc. — $80,000 on 2 filings
• American Gaming Association — $50,000 on 1 filing
• National Alliance on Mental Illness — $20,000 on 1 filing
• National Council on Problem Gambling — $20,000 on 1 filing

Lobbying Disclosure Act filings through Jul 20, 2026. A filing shows who paid to lobby on a bill it names, not what changed.