H.R. 10767 – Fair Play Enforcement Act

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Updated October 8, 2026 at 3:41 AM UTC

The Fair Play Enforcement Act would add a new subchapter to the Internal Revenue Code that places an excise tax on colleges and universities that knowingly let certain “specified individuals” compete in intercollegiate sports. The tax is calculated as a percentage of the school’s athletic revenue and is meant to deter schools from allowing people with gambling ties or professional sports employment to play. The bill affects any eligible higher‑education institution with an athletic program.

Key Provisions

Creates a new Section 4969 that imposes a tax on any eligible college or university that commits an athletic participation violation in a taxable year.
The tax rate is based on the total number of violations over the current and previous five taxable years: 5 % of gross athletic receipts for one violation, 10 % for two violations, and 20 % for more than two.
Defines a “specified individual” as anyone who has placed a wager on an intercollegiate athletic event or who has been employed as an athlete by a professional sports franchise and appears on a roster.
An “athletic participation violation” occurs when a school knowingly allows such a specified individual to actively compete, with limited exceptions for practice participation, non‑playing roster status, or participation ordered by a court.
The tax is calculated as the applicable percentage of the institution’s gross athletic receipts for the year.
The Secretary of the Treasury is directed to issue regulations to implement the tax, and the provisions take effect for taxable years ending after the law’s enactment.

Legislative Activity

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1 earlier action

HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

October 6, 2026

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HouseIntro Referral

Introduced in House

October 6, 2026

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

October 6, 2026

Bill Text

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Introduced in HouseIssued October 6, 2026

I

119th CONGRESS

2d Session

H. R. 10767

IN THE HOUSE OF REPRESENTATIVES

October 6, 2026

Mr. Smith of Nebraska (for himself and Mr. Boyle of Pennsylvania) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to impose an excise tax on colleges and universities allowing specified individuals to participate in intercollegiate athletics.

1.

Short title

This Act may be cited as the Fair Play Enforcement Act.

2.

Imposition of excise tax on colleges and universities allowing specified individuals to participate in intercollegiate athletics

(a)

In general

Chapter 42 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subchapter:

I

Colleges and universities allowing specified individuals to participate in intercollegiate athletics

Sec. 4969. Imposition of tax.

4969.

Imposition of tax

(a)

In general

There is hereby imposed on any eligible educational institution which commits an athletic participation violation during any taxable year a tax equal to the applicable percentage of the gross athletic receipts of such institution for such taxable year.

(b)

Applicable percentage

For purposes of subsection (a), the applicable percentage with respect to any eligible educational institution which commits an athletic participation violation during any taxable year is determined under the following table with respect to the aggregate number of separate athletic participation violations committed by such institution during such taxable year and the preceding 5 taxable years (referred to in such table as the applicable period):

If the number of violations during the applicable period is:	The applicable percentage is:
1	5 percent
2	10 percent
In excess of 2	20 percent

(c)

Definitions

For purposes of this section—

(1)

Eligible educational institution

The term eligible educational institution has the meaning given such term in section 25A(f)(2).

(2)

Athletic participation violation

(A)

In general

The term athletic participation violation means, with respect to any eligible educational institution, any instance in which such institution knowingly allows the active participation of a specified individual in any intercollegiate athletic event or competition.

(B)

Exceptions

Such term shall not include any instance in which a specified individual—

(i)

actively participates in a practice session for any intercollegiate athletic event or competition,

(ii)

appears on a roster for, but does not actively participate in, any intercollegiate athletic event or competition, or

(iii)

actively participates in any intercollegiate athletic event or competition pursuant to a court order.

(C)

Aggregation rule

All athletic participation violations committed by an eligible educational institution with respect to individuals described in paragraph (3)(A) shall be treated as one such violation to the extent such violations are determined by the Secretary to be derived from the same set of facts and circumstances.

(3)

Specified individual

The term specified individual means, with respect to any intercollegiate athletic event or competition, any individual—

(A)

who has placed any wager (without regard to the manner in which placed) with respect to any intercollegiate athletic event or competition, or

(B)

who has been employed as an athlete by, and appeared on a roster for, a professional sports franchise with respect to a similar athletic event or competition.

(4)

Gross athletic receipts

The term gross athletic receipts means, with respect to any eligible educational institution for any taxable year, the gross receipts of such institution for such taxable year which are attributable to, or derived in connection with, any intercollegiate athletic program of such institution.

(d)

Regulations

The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section.

.

(b)

Clerical amendment

The table of subchapters for chapter 42 of such Code is amended by adding at the end the following new item:

Subchapter I—Colleges and universities allowing specified individuals to participate in intercollegiate athletics.

.

(c)

Effective date

The amendments made by this section shall apply with respect to taxable years ending after the date of the enactment of this Act.