Bill would tax colleges for knowingly letting bettors or pro athletes compete

The bill would tax a college or university's gross athletic receipts when it knowingly allows a covered person to actively compete. It applies to educational institutions covered by a tax-code definition. A covered person is someone who wagered on an intercollegiate event or was employed as an athlete by, and rostered for, a professional sports franchise for a similar event. Practice, appearing on a roster without actively competing, and competing under a court order do not count as violations. The tax rate would be 5% for one violation, 10% for two, and 20% for more than two during the tax year and the prior five taxable years. Related violations involving people who wagered count as one when the Secretary finds they come from the same facts and circumstances. The tax would apply to taxable years ending after the Act's enactment.